Saturday, 9 April 2011

Isn't a rebasing for capital gains tax long overdue?

Isn't a rebasing (i.e. using market value instead of original cost to deduct from proceeds of sale) for capital gains tax purposes long overdue? Last rebasing was in March 1982 (some almost 30 years back!). Surely, the fact that market values at March 1982 are used, adds up to another stealth tax, especially since property prices have made such a big difference since March 1982 and since indexation allowance was abolished some years ago (i.e. the increase to cost to take account of inflation).