A new higher CGT rate of 28% will be introduced with effect from 23 June 2010. For individuals, the rate will remain at 18% where total taxable gains and income are under the upper limit of the income tax basic rate band (£37,400 for 2010-11). The new 28% rate will apply to gains, or any parts of gains, above that limit. For trustees and personal representatives, the rate will be increased to 28% from 18%. There will be no change in the annual exempt amount, which will remain at £10,100 for 2010-11.
The new higher rate will particularly affect owners of second homes, holiday homes and buy-to-let landlords. As the increase will take immediate effect, any opportunity to sell such properties in advance, to avoid the higher rate, has already passed.
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