Capital Gains Tax
From 6 April 2016, the higher rate of Capital Gains Tax (CGT) will be reduced from 28% to 20%, and the basic rate will be reduced from 18% to 10%. The reduction in rates will not apply to residential property and carried interest. This will ensure that CGT provides an incentive to invest in companies over property.
Private Residence Relief will continue to ensure that an individual’s main home is not subject to CGT. This measure will disappoint those who were hoping a reduction in CGT would free up the housing supply. In addition, there have been several small changes to entrepreneurs’ relief including a 10% rate of CGT for qualifying gains on newly issued shares in unlisted companies purchased on or after 17 March 2016