What rate of Capital Gains Tax applies now?
For the first time since Capital Gains Tax was invented in 1965, the rate of tax has been changed part way through the year. Up until 22 June 2010, the rate is 18%. Thereafter it is 18% or 28% depending on whether your income plus your taxable gains takes you above the higher rate threshold (£43,875)
It is the date of contract (not the date of completion) that normally determines when a gain arises.
On a sale of a business qualifying for Entrepreneur’s Relief, matters are somewhat simpler: the rate of tax is 10%, for gains before and after 22 June. And the increase in the lifetime limit for Enterpreneur’s Relief to £5m came as a welcome suprise to us all.