Cooper Parry advise on changes to Capital Gains Tax 
Added : 26th February 2008
Read full 'banking' indexation download
Contact Sarah Axe before 5th April.
Changes to Capital Gains Tax – ‘Banking’ indexation.
Significant changes to Capital Gains Tax (CGT) legislation were proposed in the Chancellor’s Pre Budget Report on 9 October 2007.
The proposed changes will mean that taper relief and indexation relief will no longer be available when calculating the CGT on sales of assets after 5 April 2008. In addition there will be a single CGT rate of 18%.
In some circumstances it may be possible to preserve indexation relief on particular assets, which will otherwise be lost after 5 April, without necessarily selling those assets and without triggering an immediate CGT charge as a result of the action described below.
Initially it was unclear from the proposals whether indexation could be preserved. However the Revenue have now confirmed their view of the position and have recently published amended draft legislation to reflect that. This draft legislation is not expected to become law until after 5 April 2008. However to take advantage of this apparent opportunity, action must be taken by 5 April.
‘Banking’ of indexation is relevant
- to assets owned since before April 1998, and
- may be of particular relevance to those with second homes, substantial quoted shareholdings or other types of financial investments or indeed anyone with a valuable asset that will be subject to CGT if and when it is sold.
Click to read full dowload.
If you are interested in undertaking some planning to ‘bank’ indexation or have any queries relating to your specific circumstances, please contact Sarah Axe as soon as possible.
Sign up to our RSS