CG50524 - Share identification rules: 1982 to 1985: share pooling suspended

FA82 introduced relief from inflation in the form of indexation allowance. Taxpayers were entitled to indexation allowance on assets they had held for twelve months. The allowance started to run from the month twelve months after they acquired the asset and could not create or increase a loss. Therefore, it became necessary to identify the precise date on which particular blocks of shares were purchased. This could not be done if shares lost their identity in a share pool. As a result share pooling arrangements stopped with effect from 5 April 1982 (31 March for companies).