CG17904 - Taper relief: table: Taper relief does not apply to disposals before 6 April 1998 or after 6 April 2008
|
Number of whole years in qualifying holding period |
Gains on business assets |
Gains on non-business assets |
||
|
Percentage of gain chargeable For disposals before 6 April 2000 |
Percentage of gain chargeable For disposals between 6 April 2000 and 5 April 2002 |
Percentage of gain chargeable For disposals on or after 6 April 2002 |
Percentage of gain chargeable |
|
|
1 |
92.5 |
87.5 |
50 |
100 |
|
2 |
85 |
75 |
25 |
100 |
|
3 |
77.5 |
50 |
25 |
95 |
|
4 |
70 |
25 |
25 |
90 |
|
5 |
62.5 |
25 |
25 |
85 |
|
6 |
55 |
25 |
25 |
80 |
|
7 |
47.5 |
25 |
25 |
75 |
|
8 |
40 |
25 |
25 |
70 |
|
9 |
32.5 |
25 |
25 |
65 |
|
10 or more |
25 |
25 |
25 |
60 |
- EXAMPLES
EXAMPLE 1 - A BUSINESS ASSET
Gain on disposal of asset used as business asset throughout the whole period of ownership £20,000.
Qualifying holding period 2 whole years.
85 per cent of the chargeable gain will be included in the taxable amount if the disposal occurs before 6 April 2000 but only 75 per cent of the chargeable gain will be so included if the asset is disposed of on or after that date but before 6 April 2002. If the disposal is on or after 6 April 2002 only 25% of the chargeable gain will be included.
The amount chargeable to Capital Gains Tax is £17,000 (£20,000 x 85 per cent) for disposals before 6 April 2000, £15,000 (£20,000 x 75%) in the case of disposals between 6 April 2000 and 5 April 2002 and £5,000 (£20,000 x 25%) for disposals on or after 6 April 2002.
EXAMPLE 2 - A NON BUSINESS ASSET
Gain on disposal of asset held as non-business asset throughout whole period of ownership £50,000.
Asset acquired 1 March 1998.
Asset disposed of 30 April 2000.
Qualifying holding period contains 2 whole years ownership post 5 April 1998 but the bonus year is also due. Three years taper relief is therefore due.
95 per cent of the chargeable gain will be included in the taxable amount.
The amount chargeable to Capital Gains Tax is = £47,500 (£50,000 x 95 per cent).
