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Taper Tops

Summer 2007

6 April 2007 was a capital gains tax (CGT) landmark. Any CGT liability on ordinary investments you owned before 17 March 1998 is now subject to the maximum possible taper relief of 40% of the gain. So if you have a gain of £15,000 on an investment, the relief will bring the taxable gain down to £9,000 (£15,000 x [100% – 40%]). In most cases, that would be covered by this year’s annual CGT exemption of £9,200. Tax rules change and the FSA does not regulate tax advice.