At present individuals pay tax on capital gains at two rates(when above their annual tax-free capital gains allowance):
18% if you are a basic rate taxpayer and
28% if you are a higher rate taxpayer
It is planned that these rates will reduce from 6th April 2016 (but NOT for residential property such as buy to lets, where they will stay the same.)
The new rates are:
10% if you are a basic rate taxpayer and
20% if you are a higher rate taxpayer
So there is a significant reduction in the rates charged.
It is also worth remembering that the annual tax-free allowance for capital gains tax is currently £11,100 and can often be overlooked when planning.
