No! The acquisition price is multiplied by the indexation multiplier and then the result is deducted from the selling price to get the assessable gain. You then deduct other allowances and expenses. The whole point of indexation is to adjust the acquisition price to take account of inflation over the period of ownership.
Taking that the index multiplier for shares bought in 1998/99 & sold in 2006 is 1.212. (I hope this is right!). I understand there is no indexation after 2002 but the savings as a result of using the multiplier is considerable. An example of my calculations would show that for shares bought for say €10,000 in 1998 & sold in 2006 for 15,000 that the adjusted gain is 2880 rather than 5000. Does this sound ok to you?
I don't think that these happened at the same time. As far as I know CGT was already 20% for several years before indexation relief was stopped for subsequent years. I don't think that the two changes were related.
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