This page explains how to process the CGT relief application event using the proportionate method and the fund chooses to defer the notional capital gain (the 'deferral option').
For any CGT assets for which the trustees have chosen to defer the notional gain from deemed sale. These deferred gains are firstly reduced by any CGT discount, if applicable, and then by the 2017 pension exemption percentage, They are recorded at parcel level against the CGT asset. The deferred notional gain will be realised in full or in part on the subsequent disposal.
Navigate to Fund Level > Members > CGT relief application
Ensure the fund policy is updated with the correct actuarial percentage before processing this event.
To add a new fund policy for 2016/17 FY:
Navigate to Fund Level > Settings > Fund Defaults
- click on Add new fund policy
- Set the start date to 1/7/2016.
- Enter the CGT Relief Date, i.e 30/06/2017
Funds using the proportionate method can only apply for CGT relief on 30/06/2017
- Enter the Description for the event - Class defaults to "CGT Relief Application"
- Class defaults to tick the 'Defer Capital Gain' - select the investment accounts or parcels to apply for the CGT relief
- Update Parcelling (Optional)
If there are unmatched parcels arising as a result of disposals, cost base or quantity adjustments of the investment accounts, an Update button will appear in the Update Parcelling column. For any selected investment accounts that are applying for the CGT relief but have unmatched parcels, you need to click on the Update button to match the parcels first before submitting the event.
- Finalise the event
Once you have completed all relevant sections in the CGT Relief Application event, click Submit.
After the event is submitted, the following information becomes available:
- Event Details
- Audit Details
- Related Events
- Journal Entry
- Event Postings
Refer to our knowledge article on CGT relief application for more details.
For Custom Holding accounts, the total gain column is editable which allows you to manually specify the net capital gain (after applying 1/3 CGT discount).