Personal Allowance, Basic Rate Band and CGT rates

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As announced in 2015 and 2016 budgets, Personal Allowances and the Basic Rate Band will increase from 6 April 2016 and again from 6 April 2017.

From 6 April 2016 capital gains tax (CGT) rates will reduce from 18% to 10% (basic rate taxpayers) and from 28% to 20% (higher rate taxpayers) . Note that these changes do NOT apply apply to residential property.  So buy to let landlords will still have capital gains tax on properties at the old rates.

Remember that if your adjusted net income exceeds £100,000 the personal allowance is reduced by £1 for every £2 over £100,000 giving an effective rate of 60% on income between £100,000 and £122,000 for 2016/17. Contact us for advice on planning to avoid this 60% rate.

All figures are in our tax rates table.

David Wilsdon

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