What happens after April when taper relief is abolished?
What happens after April when taper relief is abolished? How is the net value of the property calculated?
After 5 April 2008, both taper relief and the indexation allowance will be abolished for gains made by individuals and trustees (no change has been proposed to the rules for taxing companies' gains). On a sale of an asset, you will simply deduct the acquisition costs (and any capital expenditure on improvements still evident in the property) and the costs of sale from the sale proceeds, deduct your annual exempt amount (currently £9,200), and charge the gain at 18%. In the case of certain business assets, there will be a relief known as "entrepreneurs’ relief".
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