Budget 2010: CGT for high earners climbs 10% from midnight

Laura Miller
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Capital gains tax (CGT) will rise to 28% for higher earners from midnight tonight, but the rate for basic rate income taxpayers will stay the same.

George Osborne said CGT for the majority of people would remain unchanged at 18%. The Chancellor said he had considered taper relief but that it was "too complicated". A 10% CGT for entrepreneurs, which currently applies to the first £2m in qualifying gains, will be extended to the first £5m. The annual CGT allowance will be kept at £10,100 per person and will rise in the coming years in line with inflation. Chief Executive of Assetz Stuart Law says:"Osborne's CGT increase to 28% remains lower than the rates we had three years ago, of up to 40%, before Labour introduced the 18% ...

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