Budget 2010: CGT for higher earners raised to 28%

Capital gains tax (CGT) will rise to 28% for higher earners from midnight tonight, but the rate for basic rate income tax payers will stay the same.

George Osborne said CGT for the majority of people would remain unchanged at 18%. The Chancellor said he had considered taper relief but that it was "too complicated". A 10% CGT for entrepreneurs, which currently applies to the first £2m in qualifying gains, will be extended to the first £5m. The annual CGT allowance will be kept at £10,100 per person and will rise in the coming years in line with inflation.   More to follow...