Incentivising Executives - Joint Ownership Plans and the tax benefits
Taxation Bulletin
June 2009
Capital gains tax (CGT) is currently charged at a flat rate of 18 per cent. The current top rate of income tax is 40 per cent. From April 2010 a new rate of income tax of 50 per cent will apply to income over £150,000. Also, from April 2010 the income tax personal allowance will be reduced for those with incomes over £100,000, tapering down to zero. For employers and employees national insurance contributions are also due too. It is thus now more imperative to consider tax planning involving CGT wherever possible.