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HMRC internal manual

Capital Gains Manual

Compensation: indexation allowance

In the example in CG15710, the indexation allowance given in the final disposal computation was restricted, TCGA92/S57. This applies in cases where the allowable expenditure has been reduced by all of, or part of, a capital sum. CG17360+ tell you about this.

NOTE. If a taxpayer is within the charge to Capital Gains Tax, neither indexation allowance nor taper relief apply to disposals of assets on or after 6 April 2008. Previously indexation allowance had been frozen at April 1998. Companies and other concerns within the charge to Corporation Tax are not affected by these changes. For indexation allowance see CG17207+ and for taper relief see CG17895+.