Capital gains tax: increase in lifetime limit on entrepreneurs' relief

Legislation will be introduced in Finance Bill 2010 to increase the lifetime limit on gains qualifying for entrepreneurs' relief from £1 million to £2 million. The change will have effect from 6 April 2010.

Gains qualifying for the relief will continue to be reduced by the fraction 4/9, leaving the effective rate of capital gains tax at 10 per cent on the first £2 million of gains. Any gains in excess of that figure will be subject to capital gains tax at the rate of 18 per cent.

Inheritance tax: nil rate band

The 2009 Pre Budget Report announced that the inheritance tax nil rate band would be frozen at the current level of £325,000 for the 2010/11 tax year.

It has been announced that the nil rate band will remain at £325,000 until 5 April 2015.