UK:
CGT – Rate Reductions
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The measure
The rate at which individuals, trustees and personal
representatives pay capital gains tax ('CGT') will reduce.
At the moment, all of these pay CGT at 28%, except individuals who
are basic rate income tax payers, who pay CGT at 18%. The new rate
will be 20%, or 10% for basic rate tax payers. The existing rates
will continue to apply to gains from disposals of residential
property and from carried interest investments.
Who will be affected?
The change will affect all individuals, trustees and personal
representatives who are subject to UK CGT.
When?
The new rates will apply to gains accruing on or after 6 April
2016.
Our view
This change was unexpected but is likely to be a welcome
announcement in support of enterprise and investment.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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