Capital taxes
Inheritance tax
The nil rate band for 2007/8 will be increased to £300,000. The threshold for 2008/9 will be £312,000, for 2009/10 it will be £325,000 and for 2010/11 it will be £350,000.
Capital gains tax (CGT)
The capital gains tax annual exemption for 2007/8 will be £9,200 for individuals, personal representatives of deceased persons and trustees of certain settlements for the disabled. The exemption for most other trustees will be £4,600.
CGT anti avoidance
Capital losses arising on disposals on or after 6 December 2006 will be subject to a new targeted anti avoidance rule to counter schemes to create and use artificial capital losses to avoid tax. This measure is to ensure allowable capital losses are restricted to those arising from genuine commercial transactions.