Article: Changes in capital gains tax ; Reforms have been announced to capital gains tax.

Reforms have been announced to capital gains tax.

Now with gains made up to April 5, 2008, the taxpayer can deduct indexation relief (which is anti-inflation) on the sale of a business asset or shares in a trading company, and pay tax at 10 per cent.

If the sale is of a non-business asset or non-business shares, tax would be paid at between 24 per cent and 40 per cent, depending on how long the assets had been owned.

Any gains made after April 5, 2008 carry no indexation relief and will be taxed at 18 per cent subject to the new entrepreneurs' relief. This has come about after intensive lobbying by business and is made up of the following key points:

There will be a tax rate on the sale of ...

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