Budget 2003

Personal Income Tax
National Insurance 2003/04
Capitals Gains Tax
Stamp Duty
Inheritance Tax
Corporation Tax
Business Tax
Value Added Tax
Other Measures
Tax Tables
National Insurance

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.


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.

Website designed by

budget 2014 | budget 2013 | budget 2012 | budget 2011 |
budget 2009| budget 2008 | budget 2007 | budget 2006 | budget 2005 | budget 2004 |
budget 2003 | accountants | about us | services | testimonials | links | map | contact us |
Regulated by the Association of Chartered Certified Accountants