CG10245 - Capital Gains Tax: rebasing

TCGA92/S35

Capital Gains Tax was `rebased' to 31 March 1982 in FA88, so that tax is normally charged only on gains which are attributable to the period since then. Full instructions on rebasing are at CG16700+. FA88 also introduced the alignment of CGT rates with those for income. Therefore the nominal rates of tax on capital gains were adjusted to be the same as those for the incomes of individuals and companies.

CGT Simplification, including a single rate of CGT, applies for disposals on or after 6 April 2008. As part of CGT Simplification, the allowable cost of assets held at 31 March 1982 will always be their value on that date and gains are charged at the Capital Gains Tax rate.

CGT Simplification does not apply to companies who pay corporation tax on their chargeable gains.