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HMRC internal manual

Capital Gains Manual

Unit trusts: monthly saving schemes

Many trust managers offer monthly saving schemes. The unit holder makes regular contributions which are used to buy units. SP2/99 allows contributors to schemes operated by authorised unit trusts to use a simplified method of computing indexation allowance. The basic approach of the SP is to treat all the regular investments and most withdrawals as made in the seventh month of the trust’s accounting year.

NOTE. If a taxpayer is within the charge to Capital Gains Tax, neither indexation allowance nor taper relief apply to disposals of assets on or after 6 April 2008. Previously indexation allowance had been frozen at April 1998. For indexation allowance see CG17207+ and for taper relief see CG17895+.