Research finds a third more people will pay CGT this year

Government figures show that 260,000 people paid CGT in 2007. In 2008, this is expected to increase to 350,000, with the winners likely to be higher rate tax payers. People paying more CGT are likely to be those in the starting and basic rate tax bands or those with small gains which now become taxable due to the loss of taper relief. Skandia states that the reason more people will pay some level of CGT is due to the removal of indexation and taper relief, which effectively reduces the real value of the annual CGT exemption. Previously, through taper relief, clients holding assets for 10 ...