Indexation CGT purposes abolished?

beattie

Registered User
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96
Soory if this is quite trivial but someone told me that McCreevy abolished indexation for CGT purposes a few years back. Is this true?
 
Yes, no indexation from 2003 on and the indexation factors for 1986-2002 are fixed.
 
In fairness to charlie he also reduced the tax rate from 40% to 20% - not a bad tradeoff
 
No, but now you are being taxed by stealth on account of inflation.

Assuming your investments keep pace with (European) inflation of 2.5% at a minimum, that mounts up year after year. Yoou now need to make inflation +25% just to stand still.
 
In fairness to charlie he also reduced the tax rate from 40% to 20% - not a bad tradeoff

I don't think this could really be described as a tradeoff- 20% rate was introduced in 1997, freezing of indexation in 2002 - over five years later.
 
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