Capital Gains Tax taper relief offers a reduction in the tax payable on the disposal of capital assets according to how long they have been held. Capital Gains Tax taper relief varies depending on whether the assets in question are business-related or non-business in nature, with differing taper periods and tax rate reductions for each.
- Business assets are, for the purpose of Capital Gains Tax taper relief, shares held in unquoted companies, shares held in quoted companies holding at least 5% of the voting rights, and shares held by officers or employees of a company.
- Business assets taper to a 50% reduction in Capital Gains Tax after one year, and then to 75% after two.
- Non-business assets taper over a period of ten years to a maximum of 40% reduction in Capital Gains Tax.
For more information and advice on Capital Gains Tax taper relief, check out the links below and our online Fair Investment Tax Bookshop, stocked with handy guides and software.