CGT regime change
Please note that the details on this page reflect the contents of the 2008 Budget and its associated paperwork. Some points may therefore have been superseded by subsequent events.
In his first pre-Budget Report (on 9 October 2007) the Chancellor, Alistair Darling, proposed dramatic changes to the nature of capital gains tax (CGT) and, with it, the investment strategies for many individuals and families. In his Budget speech Mr Darling confirmed that the changes will take place with effect from 6 April 2008, including the Entrepreneurs' Relief announced in January 2008.
For disposals on or after 6 April 2008, the CGT regime will be ‘simplified' for all individuals, trustees and personal representatives. The new rules will not apply to companies.
The proposed CGT changes from 6 April 2008, included:
- a flat rate of 18% on all gains
- abolishing taper relief
- withdrawing indexation allowance (applicable to assets owned prior to April 1998)
- revaluation of pre-March 1982 acquisitions to their value at that date
- replacing the current LIFO share matching rules with a single cost pool
- the introduction of a new Entrepreneurs' Relief
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