Taper Relief

	Business Assets		Non-Business
Length of ownership (see below)	Rate of Relief	Effective rate for higher rate taxpayer	Rate of relief	Effective rate for higher rate taxpayer
Under 1 year	Nil	40%	Nil	40%
1 - 2 years	50%	20%	Nil	40%
2 - 3 years	75%	10%	Nil	40%
3 - 4 years	75%	10%	5%	38%
4 - 5 years	75%	10%	10%	36%
5 - 6 years	75%	10%	15%	34%
6 - 7 years	75%	10%	20%	32%
7 - 8 years	75%	10%	25%	30%
8 - 9 years	75%	10%	30%	28%
9 - 10 years	75%	10%	35%	26%
Over 10 years	75%	10%	40%	24%

Note:

• for the purpose of taper relief, periods of ownership prior to 6 April 1998 are ignored
• non-business assets held on 16 March 1998 qualify for a bonus yera for taper relief
• taper relief only applies to individuals and trusts, not companies
• for assets acquired before April 1998 indexation allowance still applies on the acquisition price or the March 1982 value until April 1998