Emergency Budget: Capital Gains Tax increased to 28 per cent

The coalition government has announced an increase of Capital Gains Tax to 28 per cent from midnight for higher-rate taxpayers.

It has risen 10 per cent from the 18 per cent set by the previous government, but this 18 per cent will remain for basic-rate taxpayers.

The Capital Gains Tax is tax levied on profits from the sale of capital assets, paid on non business assets including shares and second homes.

In 2009-10, Capital Gains Tax generated £2.5 billion.

The change is expected to raise an extra £1 billion a year.

The £10,100 CGT allowance remains the same.

Chancellor George Osborne told the BBC’s Andrew Marr show before announcing the budget: "With Capital Gains Tax, we want to protect business assets, and here is a tax where at the moment we see massive income tax evasion."

Event Diary

DISCOVER | DEVELOP | DISRUPT

UKREiiF has quickly become a must-attend in the industry calendar for Government departments and local authorities.

The multi-award-winning UK Construction Week (UKCW), is the UK’s biggest trade event for the built environment that connects the whole supply chain to be the catalyst for growth and positive change in the industry.