Investors rush to claim indexation and taper relief

timetotrade tax calculator helps investors calculate the impact of Indexation and Taper Relief on their tax liabilities - in advance of HMRC October 31st 2008 paper submission deadline.

The Revenue may have removed taper relief and indexation relief with effect from April this year, however investors won’t get to benefit from the administrative ease of the new simplified regime until after April 2009. Investors filing their year end 2008 tax returns in time for the 31st October paper submission deadline are still faced with working their way through HMRCs complicated pre-2008
share identification rules and indexation and taper calculations.

A joint survey with timetotrade and the UK Shareholders Association (UKSA) at the beginning of this year revealed that 84% of investors owned shares that benefited from accumulated tax breaks, such as indexation allowance and the enhanced taper relief applicable to business assets and AIM listed stocks. Many investors disposed of these assets in the lead up to April 2008, specifically to take advantage of the accumulated tax reliefs. However, those same investors are now faced with the onerous task of actually calculating their gains.

timetotrade has developed a Capital Gains Tax Calculator to help investors manage and calculate their Capital Gains Tax liabilities for a variety of investment types. Investors simply input all of their investment transactions: purchases, sales into the online system, and timetotrade does the rest: determining the gains to be declared or losses to be claimed. The calculator supports UK share identification rules, indexation allowance and taper relief calculations; generates a fully completed Capital Gains Tax return form SA108 which investors can print off and submit to the Revenue; as well as providing a full breakdown of the supporting calculations that are now required by HMRC.

Dary McGovern, Managing Director of timetotrade commented “Anyone who has tried to work their way through the legislative mine-field that is the pre-2008 UK Capital Gains Tax system will know that it is arguably the most complicated Capital Gains Tax regime in the world. We’re pleased to say help is at hand – but investors will need to act quickly to file by the 31st October paper deadline”

The tools can be accessed by private investors and investment clubs at http://www.timetotrade.eu

Further Reading

• A Beginners Guide to Capital Gains Tax
• Capital Gains Tax User Manual
• Latest timetotrade Press Releases