Capital gains tax
As with income tax, each person has an annual exempt amount, which is wasted if not used. This currently stands at £10,600 for individuals and personal representatives. Any gains in excess of this limit are then taxed at 18 per cent up to the limit of the basic rate income tax band, and 28 per cent on gains above that limit. Couples should make sure that both limits are used by jointly owning, or transferring assets prior to a gain being made.