Legislation will be introduced to reduce the 18% and 28% rates of CGT.
Legislation will be introduced in the Finance Bill 2016 to reduce the 18% and 28% rates in those provisions to 10% and 20% respectively. It has been stated that this ‘will be subject to exclusions for chargeable gains on disposals of residential property that do not qualify for private residence relief and receipt of carried interest.’
Rules are promised on how mixed-use property will be taxed.
Provisions will make clear that a residential property interest includes an interest in land that has at any time in the person’s ownership consisted of or included a dwelling and an interest in land subsisting under a contract for an off-plan purchase.
Rules will set out how gains should be calculated in the case of mixed-use properties.