History of Capital gains tax in Timeline

By Popular Timelines Editorial Team · Updated: April 7, 2025

Capital gains tax (CGT) is levied on the profit made from selling assets that aren't considered inventory. Common assets subject to CGT include stocks, bonds, real estate, precious metals, and other types of property. Essentially, it's a tax on the increase in an asset's value when it's sold at a profit. Rates and regulations vary by country and jurisdiction.

1965: Introduction of capital gains tax system

In 1965, the capital gains tax system was introduced in the UK by chancellor James Callaghan.

1971: Introduction of Capital Gains tax in Canada

In 1971, Capital Gains tax was first introduced in Canada by Pierre Trudeau and his finance minister Edgar Benson.

1982: United States as the world's greatest creditor

In 1982, the United States was the world's greatest creditor, owning $147 billion of assets in excess of U.S. assets owned by foreigners.

September 1985: Exemption for assets acquired before September 20, 1985 (pre-CGT)

Capital gains or losses can generally be disregarded for CGT purposes in Australia when assets were acquired before September 20, 1985 (pre-CGT).

1985: Capital gains taxes were abolished

Capital gains taxes were abolished in Kenya in 1985 to spur growth in the securities and property market.

1986: Tax incentives to promote equity capital

In 1986, Portuguese corporations changed their capital structure by increasing the weight of equity capital. In this year, the government set up a large number of tax incentives to promote equity capital and to encourage the quotation on the Lisbon Stock Exchange.

1986: United States becomes the world's greatest debtor

In 1986, the United States transitioned from being the world's greatest creditor to the greatest debtor, with a negative value of $250 billion.

1987: Tax incentives to promote equity capital

In 1987, Portuguese corporations changed their capital structure by increasing the weight of equity capital. In this year, the government set up a large number of tax incentives to promote equity capital and to encourage the quotation on the Lisbon Stock Exchange.

1987: James Poterba's work on capital gains taxes and tax evasion

In 1987, Professor James Poterba's work studied the relationship between capital gains taxes and tax evasion, finding that a 1% decrease in the capital gains tax rate increases the reported tax base by 0.4%.

1989: Study on capital gains tax and evasion using RJR Nabisco data

A study from the Journal of Public Economics, using shareholder information from the 1989 leveraged buyout of RJR Nabisco, estimated that a one percentage-point increase in the marginal tax rate on capital gains is associated with a 0.42% increase in evasion, with an average level of evasion of 11% of total capital gains.

1989: Options for paying tax on capital gains

From 1989, there were two options for paying tax on capital gains from the sale of listed stocks in Japan. The first, Withholding Tax (源泉課税), taxed all proceeds at 1.05%.

1989: Francois Vailancourt examines administrative costs associated with personal income taxes

In 1989, Canadian researcher Francois Vailancourt examined the administrative costs associated with personal income taxes and two payroll taxes (CPP/QPP and UI), which represented roughly 1% of the gross revenues collected by these three tax sources.

1992: Study on compliance costs for American taxpayers with capital gains income

A 1992 study found that American taxpayers who received capital gains income incurred higher compliance costs than those who did not, increasing the time spent on paying taxes by 7.9 hours and increasing the total cost of compliance by $143 per taxpayer per year.

1992: Taxation of Chargeable Gains Act

In 1992, the rules governing the taxation of capital gains in the United Kingdom for individuals and companies are contained in the Taxation of Chargeable Gains Act 1992.

1994: Estimates on the effect of a permanent reduction in capital gains tax rate

Estimates from 1994 suggest that a permanent reduction in the capital gains tax rate would have little effect.

1997: Reduction in long-term gains tax rate

In 1997, the tax rate on long-term gains was reduced via the Taxpayer Relief Act of 1997 from 28% to 20%.

April 1998: Introduction of taper relief

From 6 April 1998, individuals in the UK were able to claim a taper relief which reduced the amount of a gain that is subject to capital gains tax depending on whether the asset is a "business asset" or a "non-business asset" and the length of the period of ownership.

September 1999: Implementation of 50% capital gains tax discount in Australia

From September 21, 1999, Australia implemented a 50% capital gains tax discount for individuals and certain trusts that acquired assets after that date and held them for over 12 months, without adjusting the cost base for inflation.

2001: Income Tax Ordinance 2001

In 2001, Pakistan's Income Tax Ordinance 2001 defined capital assets subject to Capital Gains Tax (CGT), which include property, jewelry, artwork, collectibles, and securities, with exclusions for stock-in-trade, depreciable assets, and personal-use items.

January 2002: Purchases in Irish currency

Purchases made before January 2002 in Ireland will have been in the Irish currency of the time, the Irish Punt, which needs to be converted to Euro and indexed to present value.

April 2002: Corporate substantial shareholdings exemption introduced

On April 2002, a corporate substantial shareholdings exemption was introduced in the UK for holdings of 10% or more of the shares in another company.

2002: Introduction of flat tax rate on capital income

Since 2002, Poland has had a flat tax rate of 19% on capital income, including selling stocks, bonds, mutual funds shares, and interests from bank deposits. The tax was introduced by Marek Belka when acting as the Finance Minister and therefore is informally called the "Belka tax".

2003: Flat tax on gains

In 2003, Japan scrapped the previous system in favor of a flat 20% tax on gains, though the rate was temporarily halved at 10%.

2003: Indexation relief for asset purchases

In 2003, gains made where the asset was originally purchased before 2003 attract indexation relief, allowing the cost of the asset to be multiplied by a published factor to reflect inflation.

2003: Further reduction in long-term gains tax rate

In 2003, the long-term gains tax rate was further reduced via the Jobs and Growth Tax Relief Reconciliation Act of 2003, from 20% to 15% for individuals whose highest tax bracket is 15% or more, or from 10% to 5% for individuals in the lowest two income tax brackets.

2003: Absence of indexation relief

The absence of indexation relief for transactions on assets acquired since 2003 in Ireland means that the headline rate of 33% is not directly comparable and is higher than would otherwise be the case where inflation is taken into account.

2003: Options for paying tax on capital gains

Until 2003, there were two options for paying tax on capital gains from the sale of listed stocks in Japan. The second method, declaring proceeds as "taxable income" (申告所得), required individuals to declare 26% of proceeds on their income tax statement.

2004: IRD checking on property sales

In 2004, the government gathered $106.6 million checking on property sales from Queenstown, Wanaka and some areas of Auckland.

January 2006: Introduction of capital-gains taxes on property sales

From January 2006, Ukraine introduced capital-gains taxes on property sales.

May 2006: Extension of reduced tax rates on dividends and capital gains

On 17 May 2006, President Bush signed a law extending the reduced 15% tax rate on qualified dividends and capital gains, previously scheduled to expire in 2008, through 2010. The law also reduced the 5% rate to 0%.

2006: Introduction of capital gains tax and shareholder model

In 2006, Norway introduced capital gains tax through a reform that eliminated the "RISK-system". The new shareholder model, also introduced in 2006, aimed to reduce the difference in taxation of capital and labor by taxing dividends beyond a certain level as ordinary income.

2006: Study by Li Jin on capital gains and selling behavior

In 2006, a study by Li Jin indicated that significant capital gains discourage selling, while small capital gains stimulate trade, leading investors to sell more frequently.

March 2007: Tax Exemption for Certificates

In March 2007, certificates only qualify for tax exemption in Germany if bought before March 15, 2007.

October 2007: Autumn Statement draft proposals

In October 2007, draft proposals were announced in the Chancellor's Autumn Statement that would change the applicable rates of CGT as of 6 April 2008.

2007: Lack of studies analyzing costs associated with capital gains taxes

In 2007, it was noted that there was a lack of studies specifically analyzing the administrative costs associated with capital gains taxes.

2007: Individuals paid capital gains tax

In the tax year 2007/8 in the UK, Individuals paid capital gains tax at their highest marginal rate of income tax (0%, 10%, 20% or 40%).

April 2008: CGT rate changes

As of 6 April 2008, changes to the applicable rates of CGT were introduced in the UK. Under these proposals, an individual's annual exemption will continue but taper relief will cease and a single rate of capital gains tax at 18% will be applied to chargeable gains.

April 2008: Abolishment of taper relief

On 5 April 2008, taper relief was abolished in the UK.

December 2008: Exemption from capital gains tax

As of December 2008, financial instruments bought before December 31, 2008, are exempt from capital gains tax (assuming held for at least 12 months), even if sold in 2009 or later.

2008: Concerns over CGT changes

At the time of the 2008 proposals there was concern that the changes would lead to a bulk selling of assets just before the start of the 2008–09 tax year to benefit from existing taper relief.

2008: Tax changes

Between 2008 and 2011 in Moldova, this tax stood at 0% for companies, as the corporate income tax rate has been lowered to 0% to attract foreign investments and to boost the economy.

2008: Scheduled expiration of reduced tax rates

The reduced 15% tax rate on qualified dividends and capital gains was previously scheduled to expire in 2008.

January 2009: Germany introduced capital gains tax

In January 2009, Germany introduced a strict capital gains tax (Abgeltungsteuer) for shares, funds, certificates, bank interest rates, etc. This tax only applies to financial instruments bought after December 31, 2008.

January 2009: Issuance of Circular 47 regarding PRC income tax treatment of QFIIs

In January 2009, the State Administration of Taxation issued Circular 47, addressing the withholding tax treatment of dividends and interest received by QFIIs from PRC resident companies, but remained silent on capital gains derived by QFIIs on the trading of A-shares.

April 2009: Taxable short term capital gain

From April 2009, if equities are held for less than one year and sold through a recognised stock exchange, the short term capital gain is taxable at a flat rate of 15% u/s 111A, with additional surcharges and educational cess imposed.

June 2009: Call for a capital gains tax

In a speech delivered on June 3, 2009, New Zealand Treasury Secretary John Whitehead called for a capital gains tax to be included in reforms to New Zealand's taxation system.

December 2009: Issuance of Circular 698 addressing PRC corporate income tax treatment

In December 2009, Circular 698 was issued, addressing the PRC corporate income tax treatment on the transfer of PRC equity interest by non-PRC tax resident enterprises, but it has not resolved the uncertain tax position with regards to A-Shares.

2009: Deductions of expenses no longer permitted

In 2009, deductions of expenses such as custodian fees, travel to annual shareholder meetings, legal and tax advice, and interest paid on loans to buy shares are no longer permitted in Germany.

2009: Losses deduction from dividend income

Starting in 2009, losses can alternatively be deducted from dividend income declared as "Separate Income" in Japan, since the tax rate on both categories is equal (i.e., 20% temporarily halved to 10%).

January 2010: Special long-term accounts introduced

Since January 2010, Hungarian citizens can open special "long-term" accounts for securities. The tax rate on capital gains from securities held in such an account is 10% after a three-year holding period, and 0% after the account's maximum five years period is expired.

June 2010: Increase in Capital Gains Tax

Capital Gains Tax in the UK rose to 28% on 23 June 2010 at 00:00.

2010: Taxation of capital gains on stock

From 2010 onwards, in Portugal, for residents, all capital gain of stock above €500 is taxable on 20%. Investment funds, banks and corporations are exempted of capital gain tax over stock.

2010: Individual income tax rate in the Czech Republic

In 2010, the Czech income tax rate for an individual's income was a flat 15% rate.

2010: Extension of reduced rate on eligible dividends

Toward the end of 2010, President Obama signed a law extending the reduced rate on eligible dividends until the end of 2012.

2010: Capital gain exemption for long-term stock holdings

Until 2010, in Portugal, stock held for more than twelve months the capital gain was exempt. The capital gain of stock held for shorter periods of time was taxable on 10%.

2011: Tax changes

Between 2008 and 2011 in Moldova, this tax stood at 0% for companies, as the corporate income tax rate has been lowered to 0% to attract foreign investments and to boost the economy.

2011: Capital gains tax rate in Finland

In 2011, the capital gains tax in Finland was 28% on realized capital income.

2011: Iceland Capital Gains Tax Rate

In 2011, the capital gains tax in Iceland was 20% for a full year. This rate was a result of progressive raises in the preceding years.

2011: Introduction of a capital gains tax was proposed

In 2011, the introduction of a capital gains tax was proposed by the Labour Party as an election campaign strategy in the general elections in New Zealand.

December 2012: Tax on capital gains

Since December 2012, there is a 33% tax on capital gains in Ireland which generally does not make any allowance for inflation, with exclusions and deductions for agricultural land, primary residence, and transfers between spouses.

2012: Introduction of investment savings account (ISK) in Sweden

In 2012, Sweden introduced the investment savings account (ISK) in response to a decision by Parliament to stimulate saving in funds and equities, where there is no tax on capital gains; instead, the saver pays an annual standard low rate of tax.

2012: Real estate subject to social security taxes

In 2012, gains realized on the sale of real estate held at least 30 years became subject to 15.5% social security taxes.

2012: Extension of reduced rate on eligible dividends

Toward the end of 2010, President Obama signed a law extending the reduced rate on eligible dividends until the end of 2012.

July 2013: Tax rate for listed securities

In Pakistan, listed securities acquired on or after July 2013 are generally taxed at 15%.

August 2013: Additional health insurance tax on capital gain

From August 2013, residents in hungary also were obligated to pay an additional 6% of health insurance tax ("EHO") on their capital gain.

2013: Capital gains tax rate

As of 2013, the capital gains tax rate is 28%.

2013: Taxation of share dividends and capital gains in Denmark

In 2013, share dividends and realized capital gains on shares in Denmark were charged 27% to individuals of gains up to DKK 48,300 (adjusted annually), and at 42% of gains above that.

2013: Changes to Capital Gains tax in Canada after 2013 budget

Since the 2013 budget in Canada, interest can no longer be claimed as a capital gain. Capital losses can be carried forward indefinitely or carried back to the previous three tax years.

May 2014: Implementation of 10% capital gains tax in Egypt

In May 2014, Egypt implemented a 10% capital gains tax and also bonus shares were exempted from the new 10 percent capital gains tax on profits made on the stock market.

August 2014: Motion to reintroduce capital gains tax

In August 2014, the Kenyan Parliament passed a motion to reintroduce capital gains tax in January 2015.

2014: Return to normal tax rate

In 2014, after being postponed a few times, the return to the normal tax rate of 20% is set for Japan.

2014: Introduction of a capital gains tax was proposed

In 2014, the introduction of a capital gains tax was proposed by the Labour Party as an election campaign strategy in the general elections in New Zealand.

January 2015: Capital gains tax comes into effect

On January 1, 2015, the capital gains tax came into effect in Kenya with 5% as the general applicable tax rate.

May 2015: Tightening rules for taxing profits on the sale of property

On May 17, 2015, the Fifth National Government announced it would tighten rules for taxing profits on the sale of property.

July 2015: Exemption of CGT on properties acquired from July 17, 2015

From July 17, 2015, no Capital Gains Tax (CGT) is imposed on the subsequent disposal of properties which are acquired in the period from July 17, 2015.

October 2015: Implementation of the bright line test

From October 1, 2015, any person selling a residential property within two years of purchase would be taxed on the profits at their marginal income tax rate. This is known as the bright line test.

2015: Introduction of capital gains tax in Croatia

In 2015, Croatia introduced a capital gains tax at a rate of 12%.

January 2016: Capital gains tax on securities

Prior to January 2016, there was a capital gains tax on securities in Taiwan.

January 2016: Flat tax rate on capital income

Since January 2016, there is one flat tax rate (15%) on capital income, including selling stocks, bonds, mutual funds shares and interests from bank deposits.

April 2016: New lower rates introduced for non-property disposals

On 6 April 2016, new lower rates of 10% (for basic taxpayers) and 20% (for higher taxpayers) were introduced in the UK for non-property disposals.

December 2016: End date for CGT exemption on properties acquired until December 31, 2016

Until December 31, 2016 no Capital Gains Tax (CGT) is imposed on the subsequent disposal of properties which are acquired.

January 2017: Health insurance tax on capital gains abolished

In January 2017, the 6% health insurance tax on capital gains was abolished.

January 2017: Exemption for long term capital gains from equities

Until January 31, 2017, all long term capital gains from equities were exempt as per section 10 (38) if shares are sold through recognized stock exchange and Securities Transaction Tax (STT) is paid on the sale.

2017: Capital Gains Tax Rates for Fiscal Year 2017–18

Capital Gains Tax Rates for Fiscal Year 2017–18 (Assessment Year 2018–19)

2017: Iceland Capital Gains Tax Rate

In 2017, the capital gains tax in Iceland was 20% for the full year.

2017: Extension of the bright line test threshold

Shortly after taking office in 2017, the new Labour government extended the bright line test threshold first from two years to five years, and later to ten years.

January 2018: New corporate income tax act applicable

As of January 1, 2018, the new corporate income tax act is applicable in a country, according to which the company's profit is taxable at a rate of 20% only upon the distribution of profits.

January 2018: Capital gains tax in Iceland

From January 2018, the capital gains tax in Iceland is 22%.

January 2018: Equities bought after 1 January 2018

In January 2018, the 60% reduction for 2-year long hold does not apply anymore for equities bought after January 1, 2018.

October 2018: Changes to the tax code

From October 2018 in Moldova, a capital gain is defined as the difference between the acquisition and disposition price of the capital asset, with the applicable rate being half (1/2) of the income tax rate, which is 12% for individuals and companies.

2018: Equities considered long term capital

As of 2018, equities listed on recognised stock exchange are considered long term capital if the holding period is one year or more.

2018: Assessment Year 2018–19

Capital Gains Tax Rates for Assessment Year 2018–19

2018: Changes to income from savings and investments

In 2018, changes were made so that people with less wealth pay lower taxes. The threshold for taxable income from savings and investments will be raised to 30,000 euros.

February 2019: Tax Working Group recommended implementing a capital gains tax

In mid-February 2019, the Labour-led Coalition government's independent Tax Working Group recommended implementing a capital gains tax to lower the personal tax rate and to target "polluters".

April 2019: Government announced it would not be implementing a capital gains tax

In mid-April 2019, the Coalition government announced that it would not be implementing a capital gains tax, citing the inability of members of the governing coalition to reach a consensus on capital gains taxation.

2019: Withdrawal of exemption and introduction of section 112A

From fiscal year 2018–2019, exemption u/s 10(38) has been withdrawn and section 112A has been introduced, in India. The long term capital gain shall be taxable on equities at 10% if the gain exceeds Rs. 100,000 as per the new section.

2019: Taxation of Dividends during the year 2019

In 2019, dividends distributed during the year 2019 from entities operating under the legal form of Société Anonyme were taxed via corporate withholding taxation at a flat rate of 10%.

2019: Individual capital gains tax rate

In 2019, the individual capital gains tax in Norway is 22%. Gains from certain investment vehicles like stocks and bonds are multiplied by 1.44 before calculating tax, resulting in an effective tax rate of 31.68%.

January 2020: Taxation of Dividends

In January 2020, dividends distributed within taxable periods commencing after January 1, 2020, from entities operating under the legal form of Société Anonyme are taxed via corporate withholding taxation at a flat rate of 5%.

July 2021: Introduction of Long Term and Short Term Tax on shares

Since July 2021, the Government of Nepal has introduced the Long Term Tax and Short Term Tax on the gain after sale of shares.

2021: Taxation of Investeringssparkonto

As of 2021, In Sweden, Investeringssparkonto (Investor Savings Account) are taxed yearly as 30% of the assumed gains which is determined based on the current interest levels. As of 2021, the tax is at the minimum level of 0,375% of the total account balance.

2021: Tax rate for disposal of securities and sale of property

As of 2021, a 15% tax rate is applied for the disposal of securities and sale of property in Lithuania.

2021: Reduction of capital gains tax in Croatia

In 2021, the capital gains tax in Croatia was reduced to 10% from 12%.

2021: Capital gains tax allowance

In the 2021–22 tax year, taxpayers in the UK can make £12,300 in capital gains before they have to pay any tax.

2021: UK CGT rates in tax year 2021–22

In the UK, for the tax year 2021–22, the Capital Gains Tax (CGT) is 10% for incomes under £50,270 and 20% for higher incomes, with an additional 8% tax rate if the profit comes from residential property.

2022: Share sale reporting requirements

In 2022, individuals must report any sale of shares (i.e. capital gain/loss) through the annual return by 25 May of the year following the one in which the sale was performed and pay the related taxes.

2022: Economists argue for inflation-adjusted capital gains tax

In 2022, some economists argued that the capital gain tax should be adjusted for inflation, to avoid taxing "fictional gains", which discourages investment, due to surging price levels.

2023: CGT rate in Spain

As of the tax year 2023, details on the Capital Gains Tax (CGT) rate in Spain are available.

January 1, 2024: Implementation of Capital Gains Tax (CGT)

On January 1, 2024, Malaysia implemented a Capital Gains Tax (CGT), primarily for unlisted shares in Malaysian companies and foreign capital assets.

July 1, 2024: Changes to immovable property tax rate

In Pakistan, immovable properties acquired after July 1, 2024, are subject to a fixed capital gains tax rate of 15%.

2024: Changes to Equity Sales Tax

In 2024, equity sales are taxed at 12.5 percent if held for more than 1 year and 20 percent if held for less than 1 year. The indexation benefit from home capital gains has been removed, and the tax rate has been reduced to 12.5 percent from 20 percent.