FTSE 100 Facebook Twitter Email Calculators

FTSE 100

  1.
    72.55%
    21.57%
    5.88%

  2. Currency Converter

    Convert currencies using the lastest exchange rates
X CLOSE

Calculators

  1. Mortgage Calculator

    See how much mortgage you can have
    Calculate Mortgage

  2. Debt Calculator

    Work out how we can help you manage your debt
    Calculate Debt
X CLOSE
Contact us...
X CLOSE

Moneyextra.com Dictionary

Capital Gains - Tax Tapered Relief

Updated March 2004

Announced by Gordon Brown in his 2000 budget Tapered tax relief on Capital Gains Tax CGT is the percentage reduction of a gain that is chargeable to tax on assets disposed of after 5 April 1998. Different rates of relief are applied depending on whether the asset is classed as business or non-business.

The greatest tax relief is applied to business assets which are defined as

  • Assets used in a business
  • All shareholdings in unlisted trading companies including AIM companies
  • Any shareholding of 5 or more in a quoted trading company and any shareholding in such a company held by any employee or director. All employees not just full-time employees will qualify
  • Assets held by a shareholder whose shares are business assets and are used in the companys trade

    • All other assets are classed as Non-business assets.

      Number of years asset held after 5498 Business assets
      of gain taxable #      		 Non-business assets
      of gain taxable
      0 100 100
      1 50 100
      2 25 100
      3 25 95
      4 25 90
      5 25 85
      6 25 80
      7 25 75
      8 25 70
      9 25 65
      10 or more 25 60

      Non-business assets acquired before 17 March 1998 qualify for an addition of one year to the period for which they are held after 5 April 1998.

      # Applies to disposals made after 6th April 2002.

      Moneyextra.com recommends you take independent financial advice before acting on any article

      Back

      2009-02-17 00:00:00 © Moneyextra.com