CGT changes

The chancellor has today announced changes to the new CGT regime which is due to commence in April 2008. After much lobbying, the Government has caved in and offered the relief which helps individuals who are selling either a trading business, partnership or company.

These individuals will effectively only pay 10% tax on the first £1m of gains when disposing of such assets. The £1m cap is a lifetime limit; after that the tax rate returns to the new mainstream rate of 18%.

The annual exemption remains which means the first few thousand of gains (£9,200 in 07/08) in any one year are effectively taxed at 0%.