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Capital gains tax Under the existing rules gains realised on disposal of qualifying business assets which have been held for at least two years can be taxed at a maximum effective rate of 10%. From 6 April 2008 it is proposed that there will be a flat rate of tax on capital gains of 18%. Whilst this is good news for those disposing of non business assets such as investment property because the current minimum effective rate on these gains is 24% the proposed change represents a material increase for gains on disposal of business assets. Consideration should be given to accelerating disposals so they take effect before 6 April 2008 and, if necessary, triggering a technical disposal which does not involve loss of practical control of the asset. 28 November 2007
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