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OTS proposes making capital gains tax calculations simpler

The OTS suggests treating the same share or unit in more than one portfolio as being held in separate pools
OTS proposes making capital gains tax calculations simpler

 

  • The OTS proposes making capital gains calculations simpler for investors who use more than one platform
  • It proposes extending the timeframe for reporting property gains from 30 days to 60 days
  •   And it wants the government to review EIS rules

The Office of Tax Simplification (OTS) has recommended making capital gains tax (CGT) calculations simpler for investors who hold shares on more than one platform outside of pensions or individual savings accounts (Isas). The proposal is one of 14 recommendations on CGT and follows a report published in November 2020 on how CGT rules could be simplified.

Share holdings are normally grouped together as a whole for CGT purposes when they are sold so that taxpayers do not have to keep track of which of their identical assets they have sold. But it can result in greater complexity if an investor holds assets with different service providers such as investment managers or platforms. This is because all holdings of the same shares in a particular company have to be aggregated and pooled even though they are held by separate parties.

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