Capital Gains Rules Pre & Post 2008

Capital Gains Rules Pre & Post 2008

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Trying to figure out capital gains for an uk resident individual on share disposals from 2002 onwards.   Having difficulty finding information on the various changes to CGT during those years.   Previously I have only calculated CGT for clients back to 2008/09 when it was much easier!

Can anyone point me to any links which explains the changes in (a) indexation allowance (I think this was abolished in April 1998), (b) Taper relief (think that started from 6th April 2002 & was abolished on 5th April 2008) & (c) the matching rules (I think the s104 holding started 6th April 2008 & before that date was just termed a share pool).

Client hasn't declared Gains going back to all years to 2002 & wants to come clean to HMRC.

Many thanks for anyone taking the time to respond.

Replies (5)

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By Marion Hayes
05th Jan 2012 21:58

taper relief

http://www.hmrc.gov.uk/helpsheets/2007/ir279.pdf 

indexation

http://www.hmrc.gov.uk/rates/cgt08.htm 

if you want to post details of a few of the earlier years examples we can illustrate easier e.g.

date of acquisition, cost,date of other events, cost or proceeds and final dates sale with proceeds

try to include different holdings held on 31 March 1982, 31 March 1988 and 5 april 1998

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Replying to Portia Nina Levin:
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By irnbru
07th Jan 2012 09:55

Marion, thanks so much for your reply.   Got caught up on January madness, thus my delayed response!

First shares purchased in Feb 2000, share purchases & sales as follows (just an example there are many more, assume they are the same share holding):-

10/02/00 Purchase 4,000 shares, cost £80,000

30/05/04 Purchase 1,000 shares, cost £30,000

01/07/05 Sale 1,500 shares, proceeds £90,000

15/07/05 Purchase 400 shares, cost £10,000

01/05/06 Stock split 2:1 so 3,900 shares held became 7,800 shares

01/08/07 Sale 2,000 shares, proceeds £80,000

01/08/07 Purchase 6,000 shares, cost £120,000

01/05/09 Purchase 5,000 shares, cost £100,000

20/05/09 Sale 1,000 shares, cost £25,000

01/02/10 Sale 10,000 shares, cost £300,000

I suppose my other difficulty is understanding the share pool pre 2008 & the s104 pool after 2008 (do these need to be kept separate or are these merged for any 2008/09 disposals & beyond).   Also the implications of a stock split if any.

Any help you can give, greatly appreciated.

 

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By Marion Hayes
07th Jan 2012 12:18

quick clarification please

January is a wonderful month isn't it

Please confirm you meant proceeds on the last two?

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Replying to money999:
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By irnbru
07th Jan 2012 14:29

sorry for the typo.   Yes of

sorry for the typo.   Yes of course these should be proceeds.

Thanks again

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By LyneT
10th Jan 2012 12:21

matching rules prior to 6.4.08

As taper relief was available up to 6.4.08 it was necessary to establish exactly how long shares had been held.  So for disposals prior to 6.4.08, the matching rules were

1.  Acquisitions on the same day

2.  Acquisitons within the next 30 days on a FIFO basis

3.  Acquisitions between 6.4.98 and the date of disposal on a LIFO basis

4,  The s 104 poos which contained acquisitions between 6.4.82 and 5.4.98

5.  The 1982 pool which contained acquistions between 6.4.65 and 31.3.82

So your 1.7.05 disposal was the 30.5.04 shares plus 500 of the 19.2.00 shares.

Bonus shares are treated as having been acquired on the same day as your original shareholding.

So the disposal on 1.8.07 was 800 (prev 400) shares from 15.7.05.  The rest was from the 10.2.00 purchase.

All of the other shares go into your s 104 holding and the matching rules frm 6.4.08 are

1.  Acquisitions on the same day

2.  Acquisitions in the next thirty days

3.  The s.104 holding.

 

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