Change on capital gains on shares

I READ that a system of reductions exists for capital gains on shares sales, depending on the length of ownership. This is the first time I have seen a reference to this. I have previously declared the full capital gain. B.C.

New measures are applicable for share sale profits occurring from the 2013 tax year and the tax rate is that which applies to income tax since the gains are now added to income and taxed accordingly.

Taxation of capital gains has usually been done correctly by the tax office so there should not have been an issue with this, you just need to be careful in how the gains are declared as the tax office will automatically apply tax (and the social contributions) on what it is that is declared.

Whereas previously capital gains were taxed at a set rate of 24% this has now changed and they are taxed according to the ordinary bands but after reductions of the taxable gain for length of ownership. For shares owned for at least two years and less than eight this is 50%; after eight years it is 65%.

These abatements are only applicable to income tax and not the social contributions. All share capital gains should be declared on form 2074 as an annexe to the main 2042 tax declaration.