24 January 2008
10% on lifetime profits up to £1 million
As widely expected, Alistair Darling has announced a concession to plans for capital gains tax reform.
In an effort to encourage entrepreneurship, the Chancellor has set a rate of 10% on profits up to £1 million.
The Treasury estimates that around 80,000 business owners and investors will be able to make use of this 'entrepreneurs' relief' - which will be a lifetime allowance.
Mr Darling claimed that the changes to his much-criticised CGT reforms will cost approximately £200 million per year.
For Taxation's rundown of reactions from the tax sector, click here.
The Chancellor's announcement can be found in full here.
