For gains
realised after 5 April 1998 indexation allowance is frozen and the gain
reduced by a taper relief according to how long the asset has been
held after 5 April 1998.
Different
rates of taper relief apply dependent on whether the disposal
is of a business or non business asset.
Number of complete years
after 5/4/98 for which asset held
Business assets
chargeable for disposal in 2005/2006
%
Business assets
equivalent tax ratio for higher rate taxpayer
%
Non Business assets
chargeable for disposal in 2005/2006
%
0
100
40
100
1
50
20
100
2
25
10
100
3
25
10
95
4
25
10
90
5
25
10
85
6
25
10
80
7
25
10
75
8
25
10
70
9
25
10
65
10 or more
25
10
60
Bonus year if non business asset held on 17th March 1998
Income Tax