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
Investors simply input all of their historical investment transactions and timetotrade works out the rest - including complex calculations for share identification rules, indexation allowance and 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.
However, longer-term owners of second homes could face significantly larger tax bills on their gains - because they lose the right to claim indexation in line with inflation up to 1998 and taper relief
which has cut the tax charged on asset sales the longer they have been owned.
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.
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.