Hi,
I have held shares for a number of years and will probably sell them this year and have a CGT liability so I have been reading up on how exactly to calculate my gain. Indexing the effective cost price for inflation was something that I always thought was allowable but on reading revenue leaflets it looks like the indexing is only allowable for the years from the acquisition date up to 2002. So if you held shares from 1992 to 2002 you could index the cost price by a considerable amount to allow for inflation but if you held the same shares from 2002 to 2012 you are allowed nothing!
So my questions:
(i) Am I correct that no indexing is allowable for shares purchased after 2002 ? Or did I just look at an outdated version of CGT1 where the indexing table only went up to 2002?
(ii) If indexing is not allowable after 2002, does anyone know why ? I mean if it had always been the case that indexing was not allowable I wouldn't think anything of it, but to consciously move from a fairer scheme to a more unfair one seems very odd. They could now be taxing you for a numerical 'gain' which in real terms isn't really a gain at all. Similarly had this change happened now, it would fit right in with the general trend of 'the country is bankrupt so lets screw the taxpayer' but it looks like it was introduced back around 2002 when everything was booming, so again it makes no sense.
So, can anyone provide any insight ?
Thanks,
Usjes
I have held shares for a number of years and will probably sell them this year and have a CGT liability so I have been reading up on how exactly to calculate my gain. Indexing the effective cost price for inflation was something that I always thought was allowable but on reading revenue leaflets it looks like the indexing is only allowable for the years from the acquisition date up to 2002. So if you held shares from 1992 to 2002 you could index the cost price by a considerable amount to allow for inflation but if you held the same shares from 2002 to 2012 you are allowed nothing!
So my questions:
(i) Am I correct that no indexing is allowable for shares purchased after 2002 ? Or did I just look at an outdated version of CGT1 where the indexing table only went up to 2002?
(ii) If indexing is not allowable after 2002, does anyone know why ? I mean if it had always been the case that indexing was not allowable I wouldn't think anything of it, but to consciously move from a fairer scheme to a more unfair one seems very odd. They could now be taxing you for a numerical 'gain' which in real terms isn't really a gain at all. Similarly had this change happened now, it would fit right in with the general trend of 'the country is bankrupt so lets screw the taxpayer' but it looks like it was introduced back around 2002 when everything was booming, so again it makes no sense.
So, can anyone provide any insight ?
Thanks,
Usjes