Chancellor re-instates taper relief for Capital Gains Tax

The Chancellor, Alistair Darling, has bowed to protests from business owners and revised his plans to reform Capital Gains Tax.

In his pre-budget report last year, Mr Darling announced that he was abolishing taper relief on CGT and introducing a flat rate18%. Now following widespread criticism, he has announced that there will be a 10% rate for the first £1m of lifetime capital gains. The standard rate of 18% will apply on gains above that amount.

The new rates will take effect from 6th April and will be available to all company directors and employees who invest a material stake in a qualifying company.