§ The Earl of Kimberleyasked Her Majesty's Government:
In respect of their proposal to remove capital gains tax indexation relief on deposit-based unit trusts and offshore funds, whether disposals on or after Budget day are to attract relief up to Budget day, or no relief whatsoever; and, if the latter, whether this amounts to retrospective legislation.
The Earl of CaithnessIt is proposed that no indexation relief will be available in respect of disposals on or after Budget day of investments in the unit trusts and offshore funds concerned. Capital gains changes, whether increasing or reducing liabilities, normally apply to disposals on or after the date they came into force, and there is no reason to make an exception here. The change does not affect disposals before Budget day, and Her Majesty's Government do not consider that, in following the established practice, they are making the change retrospective.