Following last months Budget the Chancellor, George Osborne, said that the 28% CGT rate introduced in the Budget will remain in place for at least the length of this parliament.

During his address of the Treasury Select Committee today, Mr Osborne said that the previous rate of 18% (and taper relief) had encouraged abuse of the CGT system.

He said that he regards the change as permanent and he is not planning to revisit this decision in this parliament and it was a hole that needed to be plugged.

Responding to questions about how he came to the 28% figure, Mr Osborne said ‘we kept it at 18% for basic rate taxpayers, which is around half of the people who pay CGT, and raised it to 28% for higher rate tax payers.’