Reductions in capital gains tax #Budget2016

Reductions in capital gains tax #Budget2016

The budget 2016 #budget2016

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.

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