According to the tax laws of UK, the capital gains tax is imposed on the following:
On the other hand, there are certain assets, which are exempted from the capital gains tax UK. Some of these are as follows:
- Private Car
- Holding foreign currency
- British Savings Bond
- Premium Bonds
- Savings certificate
- Gilts(Government Stocks of United Kingdom
- Profits from betting and lottery
- Individual Savings Certificate assets
- Assets in Personal Equity Plan
- Compensation for personal injury
The rate of the capital gains tax in UK are divided in different tax slabs. The profit up to £8,800 is totally exempted from this tax. Anything more than this amount is considered for the UK capital gains tax. 10% CGT is imposed on the first £2,150 (more than £8,800) and 20% CGT is levied on next £31,150 with 40% on the balance.
Some other items that are exempted from the capital gains tax UK are listed below:
- Government securities
- National Savings and Investment Certificates
- Loan stocks
- Venture capital trust shares
- Enterprise investment scheme
- Shares offered after 18 March 1986