Tax Taper Relief

Capital Gains Tax taper relief is a useful tax relief that greatly lightens the financial strain of taxation on your capital gains, particularly any imposed on business assets that you may individually own (such as certain types of shareholdings).  The tax taper relief works by reducing the tax rate imposed on capital gains for an asset, at a rate that references how long you have held that asset and whether or not it is a business asset in nature.

Capital Gains Tax taper relief provides tax relief as shown on the following table:

 Years held: 

 Taper Relief %

for Business

Taper Relief %

 for Non-Business 

 1

 50 

 0

 2

 75

 0

 3

 75

 5

 4

 75

 10

 5

 75

 15

 6

 75

 20

 7

 75

 25

 8

 75

 30

 9

 75

 35

 10

 75

 40

Thus after you have held an asset for a decade, it benefits from a 75% reduction to the tax rate on any capital gains made if it is a business asset, and a 40% reduction to the tax rate if it is a non-business asset.

Check out our online Fair Investment Tax Bookshop for more information on Capital Gains Tax taper relief and useful guides to modern tax.

Disclaimer: Every effort is made to keep the site accurate, however please bear in mind that tax rates are subject to change. If you require tax advice you should speak to a professional tax adviser.