CGT rate
Individuals - 10% / 20% / 40%
Settlements - 40%
* Year of death and two subsequent years of assessment
Replacement of Indexation with the Tapering of Chargeable Gains (not Companies) - Disposals on or before 5 April 2000
Indexation has been replaced by a taper which reduces the amount of the chargeable gain the longer an asset is held after 5 April 1998. For gains realised after 5 April 1998, indexation will be given for periods up to April 1998, but not thereafter. The taper, which is more generous for business assets than for non-business assets, together with equivalent tax rates is:
Gains on business assets
Gains on non-business assets
Complete
% of gain
Equivalent tax
Complete
% of gain
Equivalent
years after
chargeable
rates
years after
chargeable
tax rates
5.04.98
%
5 .04. 98
%
Higher
Basic
Higher
Basic
0
100.0
40
23.00
0
100
40
23.00
1
92.5
37
21.27
1
100
40
23.00
2
85.0
34
19.55
2
100
40
23.00
3
77.5
31
17.82
3
95
38
21.85
4
70.0
28
16.10
4
90
36
20.70
5
62.5
25
14.37
5
85
34
19.55
6
55.0
22
12.65
6
80
32
18.40
7
47.5
19
10.92
7
75
30
17.25
8
40.0
16
9.20
8
70
28
16.10
9
32.5
13
7.47
9
65
26
14.95
10 or more
25.0
10
5.75
10 or more
60
24
13.80
Disposals after 5 April 2000
(i) Gains on business
assets
Effective tax rate, per cent
No. of years
Percentage of gain
chargeable
Higher rate
taxpayer
Basic rate
taxpayer
0
100
40
20
1
87 ½
35
17 ½
2
75
30
15
3
50
20
10
4+
25
10
5
Any size of shareholding of employees
qualify. Non-employees must hold at least 5% of the voting
rights.
Business assets taper is to be extended to
include shares held by employees of non-trading companies.
Holdings can't be over 10%.
