From midnight tonight individual and trustee higher rate taxpayers will be subject to CGT at a rate of 28%. Basic rate taxpayers will continue to pay CGT at a rate of 18%.
Entrepreneurs’ relief at a flat rate of 10% will now apply to the first £5 million of qualifying gains. The current entrepreneurs’ relief conditions will have to be satisfied – a form of taper relief or indexation will not be introduced. For shareholders in companies, this means that they will only qualify if, broadly, throughout a period of 12 months ending on the date of disposal, they were an employee or officer, held at least 5% of the ordinary share capital and voting power and the company was a trading company.
No changes have been made to the “date of disposal rule” for CGT purposes – it remains, broadly, the date of an unconditional contract or, where the contract is conditional, the date the condition is satisfied. No anti-avoidance legislation has been introduced in relation to this rule.