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taper relief

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taper relief
n
(Economics) (in Britain) a system of relief from capital gains tax under which the percentage of a chargeable gain considered taxable is reduced for each whole year (from April 1998) that the asset was held by the vendor


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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.
The new regulations also abolished taper relief, which was introduced in 1998 to reduce the amount of CGT due when shares were sold so accounting for the effects of inflation.
Key changes, which include the abolition of Business Asset Taper Relief and Indexation Relief and the introduction of a flat rate of CGT of 18%, mean that, from April 6, the rate of CGT on business assets will increase by up to 80% for many taxpayers and by substantially more than this for those individuals realising gains of about pounds 100,000 or less.
 
 
 
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