|
Capitals Gains Tax
Annual exemption and tax rates
The annual exemption for individuals has been increased to £7,900
for 2003/04 (2002/03: £7,700). Trustees receive half this
figure (£3,950 for 2003/04; £3,850 for 2002/03), although
this may be shared between trusts which have been set up by the
same person.
Employee share options
In 2002, a Court of Appeal decision (Mansworth vs Jelley) changed
the Revenue's view of the tax consequences of employees exercising
share options in their employer companies. As a result, many employees
have discovered that they should have reported significant losses
for past years rather than gains, and the Revenue have received
substantial repayment claims. The Budget changes the rules for options
exercised from 10 April 2003 onwards so that these losses will no
longer arise.
| Tax Tip |
If you have exercised employee share
options in the last six years, there may be losses.
|
"Simplification"
Every year, the Chancellor claims to simplify CGT, but it always
seems to be more complicated. This year's measures include:
* increasing the level of receipts which do not have to be reported
in detail on the tax return (provided the gains are below the annual
exemption)
* extension of the higher rates of business asset taper relief
to assets used by an unincorporated trade, even if the owner is
not the trader (eg is the landlord of the trader's building)
* simplification of the taxation of "earn-out" deals
* simplification of the record-keeping for regular savings plans
in unit trusts.
| Tax Tip |
This is good news for landlords of
commercial property - lower CGT.
|
|
|
