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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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
quick clarification please
January is a wonderful month isn't it
Please confirm you meant proceeds on the last two?
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.