Article: Capital Gains Tax Treatment For Management/Employee Shares.

The Pre-Budget Report announced that with effect from 6 April 2008, capital gains tax for individuals will be payable at a flat rate of 18%. Reductions in the effective rate of tax caused by taper relief and indexation allowance will cease to apply.

This Law-Now looks at the implications of this change for private equity managers and deals, and for employee share schemes generally, although it is important to remember that the Chancellor of the Exchequer has himself said that he is considering the impact on certain types of investment he wishes to favour and lobbying on these changes has only just begun.

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