From 6 April 2016, separate rates of capital gains tax were introduced for capital disposals, excluding residential property.
The rates of capital gains tax fell from 28% to 20% for higher rate taxpayers, and from 18% to 10% for basic rate taxpayers. These rates apply to the sale of shares, investments and commercial property.
Residential property is still subject to capital gains tax at the rate of 28% for higher rate taxpayers and 18% for basic rate taxpayers.
Entrepreneurs relief remains available for the sale of shares where all of the relevant conditions are met. This reduces the capital gains tax rate from 20% to 10% and is applied to lifetime gains of up to £10 million per person.
For more information, please contact Lesley Sutton on 01484 550037 or email email@example.com.