The Exemption
When selling a capital asset, the 'inflationary amount' (the portion of the gain attributable solely to CPI increases) is exempt from tax. Only the 'real' gain (above inflation) is taxed. This is calculated as: Cost × (CPI at sale / CPI at purchase − 1). The exemption applies to all capital assets: real estate, shares, and other property.
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.