The current rates of CGT are 10%, to the extent that any income tax basic rate band is available, and 20% after that. Higher rates of 18% and 28% apply for certain gains, mainly chargeable gains on residential properties with the exception of any element that qualifies for private residence relief.
Two specific types of disposal potentially qualify for a 10% rate:
The CGT annual exemption is £12,300 for 2022/23 and will remain frozen until April 2026.
New reporting and payment on account obligations for chargeable gains on the residential property were introduced in April 2020. From 27 October 2021, the deadline to report and pay CGT after selling UK residential property was increased from 30 days after the completion date to 60 days.
The nil rate band has remained at £325,000 since April 2009 and is set to remain frozen at this amount until April 2026.
The residence nil rate band (RNRB) was introduced in 2017, meaning that the family home can be passed more easily to direct descendants on death.
The rate of the RNRB is £175,000 for 2022/23.
Several conditions must be met to obtain the RNRB.
For many married couples and registered civil partnerships, the relief available following the second death can effectively be doubled as each individual has a main nil rate band and a residence nil rate band that passes on the death of the surviving spouse.
A reduced rate of IHT applies where broadly 10% or more of a deceased’s net estate (after deducting IHT exemptions, reliefs and the nil-rate band) is left to charity. The 40% rate will be reduced to 36% in those cases.
The VAT registration and deregistration thresholds will remain unchanged for two years from 1 April 2022.
The six-month extension to the UK-wide VAT reduction to 12.5% for the tourism and hospitality sectors ends on 30 March 2022, with rates returning to the standard rate of 20%.
With effect from 1 April 2022, the rates of VED rates for cars, vans, motorcycles, and motorcycle trade licenses will increase in line with Retail Prices Index (RPI).
For heavy goods vehicles, VED continues to be frozen in 2022/23. The HGV Levy is suspended for another 12 months from 1 August 2022.
With effect from 1 April 2022, both the standard and lower rates of Landfill Tax will increase in line with the RPI.
If you would like any advice about how the Spring Budget 2022 may affect you or your business, please do contact us by calling 0115 928 3228 or by emailing info@coalesco.co.uk
