Practical impact of CGT change

A mid-year change in CGT rates gives rise to the need for transitional rules for the current tax year. Generally, gains accruing before 23 June are taxed under the old rules (at a flat rate of 18%) and those after that date at the new rates (higher rate 28%), losses and the annual exempt amount being applied in the way most beneficial to the taxpayer. There are, however, some special rules, for example, where the charge looks at the tax year as a whole, and generally these are taxed favourably at the old 18%.