CGT rate on Qualifying Corporate Bond | AccountingWEB

CGT rate on Qualifying Corporate Bond

I have recently taken on a client who sold their company in July 2008 for a cash sum and loan notes.

The cash received was £1million and the Loan Notes were worth £1.315m. They meet the criteria of a QCB and calculations were made based on the crystalized gain in 2008/09. The base cost of the shares was minimal.

Because the 2008/09 Lifetime allowance for ER was used up (by the cash) the CGT due on the loan notes was 18%. As the loan notes have been cashed in post 23 June 2010 is the rate of tax still 18% or is it 28%?

(the client will have very little basic rate band left in 2010/11)

There are 2 comments. Login or register to view them.

Should it not be

ACDWebb |
ACDWebb's picture

Who knows?

cathygrimmer |
cathygrimmer's picture