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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Legatees: gains arising: no indexation allowance: certain xfer expenses

Although the expenditure incurred by the legatee personally will qualify for indexationallowance, being expenditure within TCGA92/S38 (2), the expenditure incurred by thepersonal representatives will not. This is because Section 64(1) merely provides for adeduction of this expenditure in the computation. It does not deem it to have beenexpenditure incurred by the legatee and thus within Section 38(2). As a result it is notrelevant allowable expenditure for the purposes of TCGA92/S54 (2) (b).