Who can claim the relief?
The relief is available to individuals, trustees and personal representatives. However, taper relief cannot be claimed by companies, as they are potentially eligible to claim indexation allowance instead. • How is taper relief calculated? Taper relief broadly reduces chargeable gains according to the period of ownership (i.e. the number of whole years for which the asset has been held after 5 April 1998), and whether the asset disposed of is a business or non-business asset. • What are the rates of taper relief? The rates of taper relief are more generous for business assets than for non-business assets. Business assets attract maximum taper relief of 75% after 2 years (4 years for disposals before 6 April 2002). Full business asset taper relief therefore results in an effective CGT rate of 10% for an individual who is a higher rate taxpayer, or 5% for a basic rate taxpayer. Non-business assets receive no taper relief until year 3 of a 10 year maximum holding period. The rate of relief
