CG17896 - Taper relief: key terms: Taper relief does not apply to disposals before 6 April 1998 or after 6 April 2008

The key terms used in the legislation are

• QUALIFYING HOLDING PERIOD

The rules used to determine the qualifying holding period are at CG17900+. The number of whole years in the qualifying holding period determines the percentage of the chargeable gain which is brought into charge.

• RELEVANT PERIOD OF OWNERSHIP

The relevant period of ownership is generally equal to the

• qualifying holding period

or

• the last 10 years of the qualifying holding period

whichever is the shorter. The `bonus year' which can be included in the qualifying holding period, see CG17901, is not added to the relevant period of ownership. Business use in the relevant period of ownership determines how much of any chargeable gain qualifies for the taper relief for business assets, see CG17925+.

• BUSINESS ASSET

A business asset, see CG17929+, qualifies for a greater percentage reduction than a non-business asset with an equivalent qualifying holding period. An asset that is not within the business asset taper rules will instead qualify for the non-business asset taper.