Profiting from propertyCapital gains tax reformOne of the major announcements delivered by the chancellor Alistair Darling in his first Pre-Budget Report was the proposal to dramatically change Capital Gains Tax (CGT). Taper Relief is to be abolished and the benefits of indexation were cancelled from 6 April 2008. A flat CGT rate of 18 per cent will now apply and relief will be available for entrepreneurs selling their businesses with the first £1,000,000 of gain being taxed at 10 per cent. No changes were proposed for private residences exemptions, lettings relief, business holdover or rollover relief, and losses brought forward are still available as before. Indexation was introduced as a way of dealing with inflation to ensure that only gains above the rate of inflation were taxed. This was available from March 1982 to April 1998. Where assets were held for the full period, an uplift of up to 105 per cent was given, reducing the potential CGT considerably. |
|
| The articles featured in this digital magazine are for your general information and use only and are not intended to address your particular requirements. They should not be relied upon in their entirety. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. For more information please visit www.goldminepublishing.com | Go Back |