New Issues

Where the shares are issued as fully paid for a single payment, a new issue should be treated as a normal purchase:

Movement code	CGT/Accounting rule	Description
PUR	A1/Normal Purchase	Purchase

Where payment for the shares is by instalment, or where shares are issued as partly paid, the initial purchase should be dealt with using an A5 rule code and subsequent calls or instalments should use an A6 rule code:

Movement code	CGT/Accounting rule	Description
CL1	A5/Normal Purchase	First call
CLS	A6/Normal Purchase	Subsequent call

Note that where the interval between the first call and the subsequent calls is less than 12 months there is no need to use the CGT Override Date to cause indexation to start from the date of the first call. This is done automatically by using the A5 and A6 rules. However, in the case of certain privatisations, where all indexation was allowed from the first call despite the interval exceeding 12 months, it is necessary to use the CGT Override Date if correct indexation is required. More obscurely, a similar situation results from an inter-spousal transfer by the disponer by way of calls as there will be a transfer in and A6 entries, but no A5 entry from which to date the start of indexation.