Changes to the rates of capital gains tax (CGT) will be relevant to many employee shareholders and share scheme participants. 
 
The only adverse change is the increase to 28% for higher and additional rate taxpayers.
 
However, even ignoring the annual exemption, this remains a significantly lower tax rate compared with forms of reward subject to income tax (where the income tax rate will be at least 40%, with employee and employer NI potentially also due). 
 
Please note also that CGT is only due when shares are sold. 
 
What is changing?
The CGT changes are (from midnight on 22 June 2010):

• The rate increases to 28% for higher and additional rate taxpayers (formerly 18%)
• Entrepreneurs' relief rate (10%) now has a lifetime limit of gains of £5 million (formerly £2 million)

What is staying the same?

• For standard rate taxpayers, the CGT rate remains 18%
• The annual exemption is unchanged at £10,100 per year