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HMRC internal manual

Capital Gains Manual

Remittance basis: computing the foreign chargeable gain: indexation allowance and taper relief

When dealing with remittance basis cases the foreign chargeable gain should be computed as at the date of the disposal using all the normal computational rules.

For disposals occurring after 5 April 1982 and before 6 April 1998 these rules will include an allowance for indexation up to the date of the disposal. No further allowance is due for indexation when the gain is remitted to the UK however long the interval is between the gain arising and the date of the remittance.

Indexation allowance for taxpayers within the charge to Capital Gains Tax was frozen at April 1998, see CG17207, and abolished altogether from 6 April 2008.

For details of the replacement provision, taper relief, see CG17895+, but note that taper relief was itself abolished for disposals after 5 April 2008.

Companies and other concerns within the charge to Corporation Tax remain eligible for indexation allowance up to the date of disposal, see CG17200+, and were not eligible for taper relief.