FIFO rule for CGT on share disposals ?

Hi,

Does anyone know why revenue insist on applying the FIFO rule for CGT on share disposals ? I assume when they set rules like this that it is in their favour. ie they expect to collect more tax by doing it this way but working through a few examples I cant see any benefit to them. The total tax owed is frequently very close, or indeed identical, whether calculated FIFO or LIFO and indeed I suspect that, based on the assumption that shares usually rise over the long term, FIFO may actually benefits the seller slightly in the sense that it minimizes the duration that you own any particular set of shares and => the chances that they have increased in price. So, is there something I am missing, is there some way that a taxpayer would in general be expected to benefit from failing to observe the FIFO rule ?
Or is the insistance on FIFO just an arbitrary choice so that there will be a clear and unambiguous method for calculations ?

Thanks,

Usjes.

Firstly, Revenue does not set the rules because it does not legislate. Revenue’s job is to administer enacted legislation.

I think the FIFO rules, under s 580, are connected with the application of indexation.

The calculation of gains on disposal of shares generally use the FIFO rule in most western countries.

An exception is made to combat bed & breakfast dealing in some countries.