The measure

The rate at which individuals, trustees and personal representatives pay capital gains tax ('CGT') will reduce. At the moment, all of these pay CGT at 28%, except individuals who are basic rate income tax payers, who pay CGT at 18%. The new rate will be 20%, or 10% for basic rate tax payers. The existing rates will continue to apply to gains from disposals of residential property and from carried interest investments.

Who will be affected?

The change will affect all individuals, trustees and personal representatives who are subject to UK CGT.

When?

The new rates will apply to gains accruing on or after 6 April 2016.

Our view

This change was unexpected but is likely to be a welcome announcement in support of enterprise and investment.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.