taper relief


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taper relief

a reduction of the capital gain arising on the disposal of capital assets. The rate of relief depends upon the class of asset (business or non-business) and the period of ownership.
References in periodicals archive ?
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.
Under taper relief they could expect a 10 per cent capital gains liability on the sale of their property, but under ER, they can only get a 10 per cent charge if the sale is made as part of their withdrawal from the business.
If, however, you wish to sell business assets that have appreciated in value since purchase, you should certainly consider selling if possible before April 6, 2008, in order to utilise the existing indexation and taper reliefs and ensure that the full gain would benefit from the current effective 10% tax rate.
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.
Following the abolition of capital gains tax taper relief in 2008, many companies will need to review their executive reward packages.
Usually after three years the amount of tax that would be due would be reduced by 20% and each year thereafter under taper relief rules.
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.