Question
To ask Her Majesty’s Government , further to the remarks by Lord Sassoon on 26 July (HL Deb, col. 1150), in what circumstances a standard rate tax payer might pay capital gains tax of more than 18 per cent.
Answer
If an individual's chargeable capital gains do not exceed any unused amount of their basic rate band, they are taxed at 18 per cent. Any balance of capital gains over that amount is taxed at 28 per cent. If a basic rate taxpayer acts as a trustee of a trust, or as the personal representative of a deceased person, gains arising on disposals of assets held in the trust or forming part of the estate are taxable at 28 per cent. This tax may be charged on the individual in their capacity of trustee or personal representative, but is not the individual's personal liability.