782. Indexation allowance for companies.

If on the disposal of an asset by a company there is an unindexed gain1, an allowance (the 'indexation allowance') is allowed for corporation tax purposes against that unindexed gain2. The indexation allowance was computed by uprating items of allowable expenditure, including acquisition cost, to reflect rises in the Retail Prices Index but from December 2017 further uprating ceased3. The sum computed by reducing the unindexed gain by the indexation allowance is the gain for the purposes of the