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Taper relief
Practical Law UK Glossary 6-107-7364 (Approx. 4 pages)
Glossary
Taper relief
Abolished by Finance Act 2008 for disposals made after 5 April 2008. A relief from capital gains tax (CGT) available to individuals, trustees or personal representatives which reduced the amount of a chargeable gain according to how long an asset was held after 5 April 1998.
The rules drew a distinction between business assets and non-business assets:
- Business asset taper relief reduced the effective rate of CGT paid by a higher rate taxpayer from 40% to 10% where the business asset had been held for a qualifying period of two years.
- Non-business assets taper relief reduced the rate of CGT paid by a higher rate taxpayer from 40% to 24% after ten years of ownership.
For further information, see Practice note, overview: Taper relief.