Effective rates of CGT in 2008/2009 after new Entrepreneurs relief has been claimed

25/01/2008

This table illustrates the CGT payable and the effective rate of CGT you would be paying to illustrate the tax savings available from claiming this relief.

Bear in mind that if no Entrepreneurs relief is claimed any gain would be taxed at an effective 18%.

Any gain less than £1,000,000 would be taxed at the effective 10% rate.

Effective rates of CGT after Entrepreneurs relief
Gain Capital Gains Tax Effective CGT rate (%)
1000000 100000 10
1100000 118000 10.72727273
1200000 136000 11.33333333
1300000 154000 11.84615385
1400000 172000 12.28571429
1500000 190000 12.66666667
1600000 208000 13
1700000 226000 13.29411765
1800000 244000 13.55555556
1900000 262000 13.78947368
2000000 280000 14
2100000 298000 14.19047619
2200000 316000 14.36363636
2300000 334000 14.52173913
2400000 352000 14.66666667
2500000 370000 14.8
2600000 388000 14.92307692
2700000 406000 15.03703704
2800000 424000 15.14285714
2900000 442000 15.24137931
3000000 460000 15.33333333
3100000 478000 15.41935484
3200000 496000 15.5
3300000 514000 15.57575758
3400000 532000 15.64705882
3500000 550000 15.71428571
3600000 568000 15.77777778
3700000 586000 15.83783784
3800000 604000 15.89473684
3900000 622000 15.94871795
4000000 640000 16
4100000 658000 16.04878049
4200000 676000 16.0952381
4300000 694000 16.13953488
4400000 712000 16.18181818
4500000 730000 16.22222222
4600000 748000 16.26086957
4700000 766000 16.29787234
4800000 784000 16.33333333
4900000 802000 16.36734694
5000000 820000 16.4

About the Author

Lee Hadnum The Author of this article/answer is our site Editor, Lee Hadnum. Lee is a rarity among tax advisers having both legal and chartered accountant qualifications. After qualifying a prize winner in the Institute of Chartered Accountants exams, he also went on to become a chartered tax adviser (CTA).

He worked in Ernst & Youngs Entrepreneurial Services department for a number of years before setting up his own tax planning practice. He is now a full time tax author.

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Disclaimer

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i) Please note that the articles/answers contain general guidance only and do not constitute accountancy, tax, investment or other professional advice.

ii) The contents of this article/answer are for information only and are intended to assist readers in identify any tax planning opportunities that may be available to them. The information contained in this answer is not intended to be a substitute for taking proper taxation advice and should not be relied upon in this way. Always consult a qualified accountant or taxation adviser. Your situation will then be looked at individually and specific advice relevant to your circumstances can be given. The Expert does not accept responsibility for any loss arising as a result of reliance on any information contained in this answer.

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