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08: Taper relief

This information refers to 2006/07, and will be updated shortly.

Taper relief reduces a chargeable gain by reference to how long the asset has been held. It is applied to net gains after any indexation allowance. Losses are deducted so as to minimise your total chargeable gain. Different rates of taper relief apply to business assets and non-business assets. Business assets include:

  • Assets you use in an unincorporated business. As the owner of the asset, you do not need to be involved in the business.
  • All shareholdings in unlisted trading companies, including AIM companies.
  • Any shareholding of 5% or more in a quoted trading company and any shareholding in such a company of which you are an employee or director.
  • Employee holdings of up to 10% in non-trading companies.
  • Assets used in an unlisted company’s trade where the company is a qualifying company in relation to you as the owner of the asset.
Click here for further information on capital gains tax.Last Updated