Capital Gains

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Where are capital gains entered?

Select Capital Assets from the Edit Return pull down menu.

How to enter the disposal of shares?

There is a step-by-step example to illustrate this.

The Share Holding section is used to enter details of the initial purchase of shares.

Use the option for operative events to dispose of some or all of the shares. (The operative event screen is also used to enter details of the purchase of more shares of the same class.)

Enter a date and then change the line that (by default) shows 'Acquisition' to 'Disposal'.

The date must be entered before this change can be made.

How to select the client's spouse?

The Capital Asset module is written as a stand-alone module. This means that it does not use the client/spouse radio button at the top of the main Personal Tax screen. Capital Assets will always start with the client selected.

To select the spouse, while in Capital Assets, choose 'Select Client' from the File pull-down menu and select the spouse from the list of Personal Tax clients.

Alternatively select the person as a client before choosing Capital Assets from the Edit return menu.
This does not apply to Limited Companies.

Why is the indexation allowance less than I expected?

The indexation allowance applied from April 1982 to April 1998 and was replaced by taper relief from April 1998 onwards.

Assets held prior to this date are given indexation allowance to April 1998.

Indexation continues to be calculated on gains for Limited Companies from April 1998.

How can I claim taper relief?

IRIS will automatically compute any taper relief due on the disposal of an asset, share holding or other capital gain.

Taper relief will be computed using the date the asset and so on. was acquired, date of disposal and whether the item concerned is used for business or private purposes.

Taper Relief does not apply to Limited Companies.