| Annual exempt amount 2008/09: individuals £9,600, most trustees £4,800. |
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| For disposals after 5 April 2008, taper relief (for length of ownership) and indexation allowance (for effects of inflation up to April 1998) are abolished. Net gains after all reliefs and annual exemption amount are taxed at 18% (2007/08: marginal rate of income tax, i.e. 10% / 20% / 40%). |
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| Entrepreneurs' relief |
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| For disposals of sole trade or interest in a partnership trade, or shares in a trading company by an employee owning at least 5%, the gain (up to £1m lifetime allowance) is reduced to 5/9, to give an effective rate of CGT of 10%. Gains above the allowance are taxed at 18%. |
