Taper Relief (CGT — historical)
UK tax glossary · Last reviewed: April 2026
Taper Relief applied to capital gains in the UK from April 1998 until 5 April 2008. It reduced the chargeable gain depending on how long a business or non-business asset had been held, with business assets benefiting from a 75% reduction after just two years.
Taper Relief was abolished in April 2008 when the then-Chancellor Alistair Darling replaced it with a flat 18% CGT rate (later modified to 18%/28%). Entrepreneurs' Relief (now Business Asset Disposal Relief) was introduced at the same time to compensate business owners.
Although no longer in force, Taper Relief is occasionally relevant for assets still carrying a base cost built up before 2008, and for understanding the history of UK CGT. Some accountants still reference 'tapered' colloquially when describing progressive CGT rates.
Common questions
Does Taper Relief still apply to any assets sold today?
No. Taper Relief was abolished from 6 April 2008. Assets sold today are subject to current CGT rates regardless of how long they were held before that date (although indexation allowance applies to certain pre-April 1998 gains for companies).
Related resources
TaxHelper provides general information based on published HMRC rates and guidance. It is not regulated financial or tax advice. For decisions involving significant sums, complex circumstances, or if you are unsure, speak to a qualified accountant or HMRC directly.