CG17895 | Introduction and computation: taper relief

Introduction

Taper relief applied to disposals subject to Capital Gains Tax (CGT) from 6 April 1998 to 5 April 2008. It reduced (“tapered”) the taxable gain according to how long the asset was held and whether it qualified as a business asset. Both the taper rates and the definition of business assets changed during this period.

Key information

The introduction of taper relief meant that indexation allowance for CGT was frozen from 1998, before being abolished in 2008.

Taper relief also replaced retirement relief and led to the suspension of share pooling.

Taper relief was abolished for disposals from 6 April 2008 (see Schedule 2 of the Finance Act 2008).

Guidance

Guidance on taper relief is no longer included in this manual. For information about taper relief, refer to previous versions of this guidance. CG10100 explains how to do this.