Annual exemption and tax rates

The annual exemption for individuals has been increased to £8,800 for 2006/07 (2005/06: £8,500). Trustees receive half this figure (£4,400 for 2006/07; £4,250 for 2005/06), although this is usually shared between trusts which have been set up by the same person.

No changes were announced to the exemption for a taxpayer's only or main residence or to the complications of CGT taper relief.