The government has reduced the higher rate of CGT from 28% to 20% and the basic rate from 18% to 10%. The trust CGT rate has also reduced from 28% to 20%.
The 28% and 18% rates will continue to apply for carried interest and for chargeable gains on residential property that do not qualify for private residence relief. In addition, the 28% rate still applies for ATED related chargeable gains accruing to any person (principally companies).
These changes have taken effect for disposals made on or after 6 April 2016. The rate for disposals qualifying for Entrepreneurs’ Relief (ER) remains at 10% with a lifetime limit of £10 million for each individual.
The experts react to the Capital Gains Tax Rate Reduction at rothmansllp.com/news-events/lets-talk-tax/