A summary of CGT changes in the Autumn Statement.

A summary of CGT changes in the Autumn Statement. 

The capital gains tax annual exempt amount for 2014-15 will be £11,000.

The allowance for 2015-16 will be £11,100; the allowance for trustees of most trusts will be half the allowance for individuals.

Legislation will be introduced to restrict the relief available for the final period of ownership from 36 months to 18 months. This will apply where a claim has been made for private residence relief on a property that has not been owner occupied throughout the entire period of ownership.

The definition of trusts for vulnerable beneficiaries has been extended for property transferred into settlement on or after 6 April 2014 for the purposes of sections 89, 89A and 89B of the CGTA and for all other purposes for the tax year 2014-15 and subsequent years.

When someone dies, there is no deemed disposal for CGT for assets in a trust; the assets are acquired by the personal representatives and there is a charge to CGT on any increase in value within the trust. For vulnerable beneficiary trusts, there will now be an uplift in the base cost of the assets, in line with the treatment for individuals.

Article contributed by ACCA