Companies pay corporation tax on capital gains after indexation allowance at their normal rate. Gains and losses on sales of shareholdings of 10% or more in trading companies or trading groups are exempt, subject to certain exclusions.
From 6 April 2016 capital gains realised by individuals are taxed at a flat rate of 10% for basic rate taxpayers and 20% for higher or additional rate taxpayers. An 8% surcharge applies on gains on residential property and carried interest from 2016/17.
Qualifying gains will be taxed at 10%.
Claims may be made on more than one occasion up to a “lifetime” total of £10 million.