CGT reform: Indexation in share pools

CGT reform: Indexation in share pools

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In light of the CGT reform due to take effect from 6th April 2008, aside from a small note about crystallised indexation remaining in the case of NGNL transfers between spouses, my understanding is that indexation will entirely disappear. Is this correct?

Does this mean that indexation will no longer be applied between operative events in the new, single LIFO share pool?!

Thanks to anyone who may be able to confirm or disprove my thinking.

Pete

Peter Wilkes|

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By Wilko1977
26th Feb 2008 11:07

CGT reform
Thanks very much Claire - very helpful.

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By Claire Kelly
25th Feb 2008 13:24

ref share pools
I think you will find your answer in the FAQs section in Capital Gains Tax CGT reform on the HMRC website "It is possible that shares acquired between 1st April 1982 and 5th April 1988 have consituted an old section 104 holding. Such an old holding will contain two pools of expenditure, the pool of qualifying expenditure and the pool of indexed expenditure.Because of the abolition of indexation allowance, the figure to be taken into the new section 104 holding is the pool of qualifying expenditure"

Hope this helps

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