Capital taxes

Capital gains tax
The 2009/10 capital gains tax annual exemption is £10,100 and the exemption for trusts is generally £5,050.

Inheritance tax
The 2009/10 inheritance tax nil rate band is £325,000 and the rate of tax on death remains at 40%.

Inheritance tax: agricultural property relief and woodlands relief
Both inheritance tax agricultural property relief and woodlands relief will be extended to property in the European Economic Area (EEA). The change will affect inheritance tax due or paid after 22 April 2003 for agricultural property in an EEA state. The earliest deadline for reclaiming overpayments of inheritance tax will be 21 April 2010. 

Capital gains tax hold-over relief
Hold-over relief on gifts or sales at an undervalue of business assets will be extended to agricultural property in EEA states which has been farmed by a person other than the owner. The extension will apply retrospectively to disposals of agricultural property in a qualifying EEA state for five years from 31 January following the tax year to which the claim relates. Therefore, claims for disposals taking place in the 2003/04 tax year must be made by 31 January 2010. The time limit for making claims for hold-over relief will be reduced to four years from 1 April 2010.

Don’t forget Take advantage of low values. Depressed property and share values could mean you can make lifetime gifts of investments now with little or no capital gains tax to pay. The gift’s value will also be lower if inheritance tax ultimately has to be paid.

Stamp duty land tax (SDLT)
The stamp duty land tax ‘holiday’ announced in September 2008 has been extended to 31 December 2009. This exempts from SDLT individuals’ purchases of residential property for up to £175,000. Legislation will be introduced with effect from 22 April 2009 to allow leaseholders to claim SDLT relief where they acquire the freehold of their block of flats through the statutory right of leasehold enfranchisement. 

Stamp Duty Land Tax (based on consideration)