Currently CGT is charged at 18% for individuals who are basic rate taxpayers, and 28% to the extent that an individual is a higher rate taxpayer or the gain exceeds the unused part of the individual’s basic rate band. Trusts and personal representatives are liable to a 28% rate of capital gains tax.
These rates will be reduced to 10% for basic rate taxpayers and 20% for higher rate taxpayers for gains accruing on or after 6 April 2016. The rate for trusts and personal representatives will be reduced to 20%. There will be an additional 8% surcharge on gains arising from ‘ carried interest’ or from residential property where private residence relief is not available.
Where individuals are considering the disposal of assets, it may be advisable to defer the disposal until 6 April 2016.