"However, the suggestion of reducing the seven years to five and scrapping taper relief
entirely looks like a bald tax grab and revenue-raising move.
In 2008, Gordon Brown replaced taper relief
with ER, which reduced the CGT payable to 18% on an allowance of up to PS1m provided the shares had been held for one year and the person played an active role in the company.
"Companies making large profits from the sale of assets will pay less tax, but smaller businesses, which have typically benefited from the taper relief
rate in the past, will have to pay almost double.
A IF you die between three and seven years of making a gift (PET), taper relief
means that your family will not pay the full rate of tax, if any, on the gift.
If the `overage' is over land or building used by the training yard, this should qualify as a business asset and so achieve what is known as a business asset taper relief
and therefore pay capital gains tax at only ten per cent.
The 3-D modeling features include Taper Relief
, which allows for tapering a specific point, and Mirror and Merge Relief for creating symmetrical models, Delcam says.
It is a chargeable asset for Capital Gains Tax purposes but should qualify for Business Taper Relief
. This relief will exempt a maximum of 75 per cent of any gain.
reduces the amount of the gain chargeable to tax.
Usually after three years the amount of tax that would be due would be reduced by 20% and each year thereafter under taper relief
When taper relief
was available pre-2008, it reduced the effective rate of CGT on business assets (for example, shares in a private trading company) from 40% to 10% if it was held for two years.
"If a sole trader ceases trading and puts their business premises up for sale, previous business asset taper relief
would have meant their capital gains tax was 10 per cent, and it could still be with Entrepreneur's Relief - but then again, it might instead be 18 per cent," Mr Silsby said.
"The saving on CGT is certainly not as generous as it first appears; under taper relief
, the lowest tax rate on profits on an investment property is only 23%.