Compact Services

Annual exemption

	2016/17	2015/16
Individuals and deceased estates	£11,100	£11,100
Most trusts	5,550	5,550

Notes

1. Each individual is entitled to an annual exemption, but that exemption may be denied if he claims the remittance basis (see Personal Taxation).
2. The annual exemption cannot be transferred or carried forward or back to another tax year.

Tax rate

	2016/17		2015/16
	Residential property	Other
Individual - to limit of basic rate band	18%	10%	18%
Individual - above basic rate band	28%	20%	28%
Trusts and deceased estates	28%	20%	28%

Notes

1. CGT is payable on capital gains made in the tax year, after deduction of capital losses, available reliefs and the annual exemption.
2. In 2016/17, receipts of carried interest by venture capital investors are taxed at the same rates as residential property.
3. When a chargeable asset is given away, the donor is treated as receiving the full market value and is liable for CGT accordingly.
4. There is no charge on disposals between spouses or registered civil partners who are living together. On such disposals, the transferee takes over the transferor’s CGT cost.
5. There is no CGT on gains accrued to the date of a taxpayer's death. Instead, the value of the estate may be subject to Inheritance Tax

Entrepreneurs' Relief (ER)

	2016/17	2015/16
Lifetime limit	£10m	£10m
CGT on qualifying disposals	10%	10%

Notes

1. Disposals made by individual or certain trustees can qualify for ER.
2. The asset disposed of must have been owned for at least a year and be one of:
• a business or an interest in a business
• business assets sold within three years of the business ceasing
• shares in a trading company of which the individual is an officer or employee and holds at least 5% of the ordinary share capital, or acquired the shares under an EMI scheme
• assets used by the shareholder's personal company or partnership and sold at around the same time as 5% or more of the company's shares or partnership interest

Other CGT reliefs

Asset	Conditions
Taxpayer's only or main home	Gain is exempt for the periods the taxpayer lives there, or is deemed to live there, plus the last 18 months of ownership.
Chattels (tangible movable property)	If bought and sold for less than £6,000.
Gifts to charity	Not charged to CGT, and gifts of quoted shares and land also enjoy an income tax relief.
Assets which become of negligible value	Deemed to be sold at nil, to create loss, when an election is made.