Capital gains tax was increased to 28% for 40% and 50% income tax-payers with effect from 23 June 2010. The objective appears to be to reduce the incentives for individuals to exploit the differential between income and capital gains.  

This move is likely to improve the attractiveness of pension arrangements relative to certain other types of investment that have, up to now, been adopted by certain individuals (e.g. property investments, direct investment in shares).  

The annual capital gains tax exemption allowance of £10,100 will remain unchanged for 2011/12, but will increase with inflation in future years.