ER was introduced in 2008 as a replacement for the old systems of taper relief
and retirement relief.
ER did not exist in those days, but there was a similar scheme called taper relief
Usually after three years the amount of tax that would be due on the gift would be reduced by 20% and each year thereafter under taper relief
The Royal Institution of Chartered Surveyors called on the Government to introduce some form of taper relief
in the Budget to protect longterm investors from the full impact of any rate hike.
The author notes that many companies will need to review executive packages in light of the Chancellor's review of capital gains tax taper relief
If a sole trader ceases trading and puts their business premises up for sale, previous business asset taper relief
would have meant their capital gains tax was 10 per cent, and it could still be with Entrepreneur's Relief - but then again, it might instead be 18 per cent," Mr Silsby said.
Meanwhile, capital gains tax taper relief
has also been scrapped.
The tax-free annual exempt amount (currently pounds 9,200) will remain, but taper relief
and indexation allowance will no longer be available.
Capital Gains Tax taper relief
will still be scrapped on April 1 and set at a single 18 per cent rate but this will cut to 10 per cent on gains of up to pounds 1million to help small firms.
John Wright, chairman of the Federation of Small Businesses which is said to have suggested the 9% rate, said: ""We do not expect a wholesale revision back to taper relief
Chancellor Alistair Darling caused uproar in the business community last October when he announced in his Pre-Budget Report the removal of capital gains tax taper relief
, which had been as low as 10%, for a new flat rate of 18%.
In his recent Pre-Budget Report, the Chancellor abolished the capital gains tax taper relief
system, including the ten per cent rate levied on some asset sales, and in its place introduced a flat rate of 18 per cent.