Introduction Guided Tour Customer Services What is CGT?

Indexation and Taper Relief

Before April 1998, it was possible to apply indexation to gains made on the sales of shares to allow for the retail price index rate of inflation. However, for private investors’ portfolios, indexation was replaced by taper relief.

The principle of taper relief is simple, the longer you hold a share before selling, the more tax relief you can claim against the sale. No relief is given for non-business assets in the first two years but thereafter 5% relief a year can be applied up to a maximum of 10 years, a maximum relief of 40%. For shares held at 17th March 1998, the start qualifying date is 6th April 1998 and you have an extra year of relief, so that you receive 5% relief from April 2000.

• Advanced Portfolio
  
  

• Capital Gains
  
  

• Fundamentals
  
  

• Reporting