Budget Summary 2014 - page 9

Capital gains tax (CGT) annual exempt amount
The annual exempt amount, currently £10,900, will rise to £11,000
in 2014/15 and £11,100 in 2015/16, as announced previously.
Business asset rollover relief
From 19 March 2014, companies will not be able to claim rollover
relief on the disposal of tangible assets where the proceeds are
reinvested in intangible fixed assets. For claims made before
19 March 2014, the measure adjusts the tax cost of the replacement
intangible fixed asset, preventing double tax relief being given on
any rollover relief claims that have already been made.
Farmers will be able to claim business asset rollover relief on
payment entitlements under the new agricultural subsidy basic
payment scheme.
Residential property
The final period exemption for CGT private residence relief will be
reduced from 36 to 18 months, in most cases from 6 April 2014.
Non-UK residents will be liable to CGT on gains accruing from April
2015 on disposals of UK residential property. Both changes were
announced in the Autumn Statement 2013.
Remittance basis: CGT and split-year treatment
A correction to the split-year rules in the statutory residence test
will ensure that non-UK domiciled remittance basis users are not
charged CGT on capital gains they make in the overseas part of a
split year of residence.
Inheritance tax (IHT) threshold
As announced in the Budget 2013, the IHT threshold will
remain at £325,000 until 5 April 2018.
Trusts simplification
The filing and payment dates for IHT relevant property
trust charges will be simplified, as previously announced.
Income that remains undistributed for more than
five years will be treated as part of the trust capital
19 MARCH 2014
Share your gains.
If you
are a higher or additional
rate taxpayer, you will pay
28% on all capital gains
above your annual
exemption. If your spouse
or civil partner is a basic
rate taxpayer, they will only
pay 18% on gains above
their annual exemption
until their basic rate tax
band is exhausted.
page 9
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