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In Taxation, 19 July 2001 at page 403, the reader's query entitled 'Unusual facts', has a response from 'NK' showing a capital gains tax calculation where taper relief is applied prior to the private residence relief.
In Taxation, 19 July 2001 at page 403, the reader's query entitled 'Unusual facts', has a response from 'NK' showing a capital gains tax calculation where taper relief is applied prior to the private residence relief.
We followed the Revenue capital gains pages instructions, and it was clear that taper relief was only to be applied after all other reliefs and exemptions. Two sources at the Revenue, including a technical Inspector, have advised that this is in fact the correct treatment and it is in keeping with the deduction of taper from chargeable gains.
Clearly the taxpayer suffers when contrasting the more generous treatment of indexation applied to the pre-apportioned gain but, as we were advised by the Inspector, taper relief was not introduced as a replacement for indexation but rather as a separate 'simplification of the system'!
Martin Jasper ATT,
Martin Jasper Taxation Services.
