Commentary

C2.301 General principles

Capital gains tax
Capital gains tax | Commentary

C2.301 General principles

Capital gains tax | Commentary

Division C2.3     Indexation allowance

For updates affecting this Division please see Part C0 Updates

CGT Indexation allowance

C2.301 General principles

Indexation allowance is not available to individuals, trustees and personal representatives for disposals on or after 6 April 2008. It continues to be available to companies but is frozen from 1 January 2018 so for disposals on or after this date the allowance is calculated up to December 2017.

Indexation allowance was introduced in 1982 to take account of the effect of inflation on the computation of a chargeable gain1. It is based on fluctuations in the retail prices index (see C2.303).

The

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