SURPRISE CGT REDUCTION

摘要

It has long been speculated that the rate of capital gains tax (CGT) might rise to close the gap between the rates of income tax and CGT. In a surprise announcement in Budget 2016 the top rate of CGT will reduce from 28% to 20% with the basic rate falling from 18% to 10% on gains. This will affect disposals made on or after 6 April 2016. The reduced rates will not apply to gains realised on residential property (that do not qualify for private residence relief) and 'carried' interest. With the forthcoming hike in stamp duty land tax (SDLT) on second homes, it at least avoids 'fisticuffs' between a purchaser angling for completion by 31 March and a seller who would want to defer it post 6 April.