CGT + INVESTMENT MANAGEMENT

Isokon's Capital Gains Tax module features a number of calculations and reports. The notional disposals calculation produces a 'What If' report that enables users to estimate, and potentially therefore to significantly to reduce, CGT liability.

The loss or gain after indexation and taper relief can be calculated for a single equity, or for an entire portfolio, as if disposed of at current value. This, as well as providing a snapshot of the CGT position at any point in time, enables set-off of losses and exemptions to be applied to best advantage.

Investments Window

From the Investments Window it is possible to drill down and see the transaction history of any individual holding.

CGT Result - 82 Pool

The 82 Pool CGT Result Window provides a summary of the proceeds, gain, indexation and where appropriate, taper relief.

CGT - 82 Pool Indexation

The User can check that indexation has been correctly applied by detailing the RPI factors used and any restriction where appropriate.

CGT Result - 85 Pool with Taper Relief

Equities can be matched against the 85 Pool (Post-82 Pool, New Pool or Section 104 Holding) where taper relief has been calculated. It is possible to drill down to show the details of the taper relief calculation.

CGT - Application of Rules and Principles

The aim of the Isokon CGT facility is to correctly apply all the Inland Revenue rules on disposals of trust assets whilst providing complete audit information and reporting on the results of the matching and computation procedures.

The following rules and principles have been incorporated into Isokon:

- application of indexation, including correct roundings

- full matching procedures, LIFO or FIFO as appropriate, against:

- acquisitions on the same day

- acquisitions in the following 30 days (anti-bed & breakfasting rules)

- previous post 5April98 acquisitions

- the New (Post 82) Pool

- the Old (Pre 82) Pool

- application of taper relief, distinguishing between business and non-business asset rates and applying the time-based taper and bonus year provisions

- minimisation of gain by taking the higher of cost and 31March82 value for Old (Pre-82) pool holdings

- aggregation of same day holdings using a weighted average to match such acquisitions

- correct treatment of disposals of rights issues nil paid, i.e. using the small disposal or part disposal rules as appropriate

- ability to deal with privatisation shares, warrants, reorganisations, mergers and acquisitions and other hybrid or non-standard capital events

- correct treatment of bonus issues by allocation of new shares over existing holdings

- fully annotated reporting and detailed results windows