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
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014
References in periodicals archive ?
But she continued: "The OTS also recommended removing the taper relief which, while complicated and confusing, did have its place as it reduced the amount of tax people paid depending on how long they lived."
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. This rewarded sustained business growth by giving 75% tax relief on a capital gain after two years.
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 rules.
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. The guide explains the wide spectrum of employee reward systems, provides assistance with the more common salary and benefits packages--and with areas that may incur unexpected tax charges.
Business groups have been angered by Darling's October decision to lower the main rate of capital gains tax to 18 per cent from 40pc but at the same time get rid of "taper relief" - where taxes decline the longer an asset is held.
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.
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 and indexation,.
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.