3 year Capital Gains Ruling on Shares?

[Big Al.]

So could somebody please explain in laymans terms, the Ruling regarding capital gains tax on shares that you have owned of over 3 years.

I know that it's approx £8500 on shares owned for less that that period.

TYIA.

[Eric Mc]

For 2006/07, if your total gains are less than £8,800, no Capital Gains Tax is due.

Assets over three years old are subject to Taper Relief, which allows you to reduce the actual gain by a percentage amount. The percentage amount increases each year after year 3.

[Big Al.]

Eric Mc said:

For 2006/07, if your total gains are less than £8,800, no Capital Gains Tax is due.

Assets over three years old are subject to Taper Relief, which allows you to reduce the actual gain by a percentage amount. The percentage amount increases each year after year 3.

Yep understood, but what is the ruling, does any profit after £8500 drop from 40% by say 10% during the thir year of ownership, 20% after the 4th year etc.

Is there a fixed rate for each year?

What I'm trying to define is "The percentage amount that, increases each year after year 3"

Again TYIA.

[srebbe64]

Big Al. said:

Eric Mc said:

For 2006/07, if your total gains are less than £8,800, no Capital Gains Tax is due.

Assets over three years old are subject to Taper Relief, which allows you to reduce the actual gain by a percentage amount. The percentage amount increases each year after year 3.

Yep understood, but what is the ruling, does any profit after £8500 drop from 40% by say 10% during the thir year of ownership, 20% after the 4th year etc.

Is there a fixed rate for each year?

What I'm trying to define is "The percentage amount that, increases each year after year 3"

Again TYIA.

I know when selling a company's shares that after two years you are eligible for 75% Taper relief on the CGT. CGT is currently 40%, 75% of 40 = 30, therefore you only pay 10% CGT.

[Eric Mc]

Gains on the disposal of business assets get better Taper Relief than non-business assets. Shares in a "close company" held by a person who is a director or a full time employee would normally be deemed to be business assets. Shares in a PLC would not.