Investors urged to act on CGT indexation changes

Indexation is due to be abolished along with taper relief on 6 April, but draft legislation released last month confirms the benefits of indexation relief can be retained by transferring assets to a spouse. The indexation system was originally introduced to prevent high levels of inflation in the mid-1980’s from making CGT payable on gains which were eroded by inflation. It allows those offloading assets to uplift the base cost of an asset to account for the impact of inflation between the time the asset was purchased and April 1998. Mike Warburton, senior tax partner at Grant Thornton,...