Groups: indexation allowance restriction: redeemable preference shares
No indexation allowance is due to the investing company on the disposal of redeemable preference shares if the investing and issuing companies were
- linked when the redeemable preference shares were acquired, and
- linked when the shares were disposed of.
If the companies
- were not linked when the shares were acquired
- subsequently became linked, and
- were linked when the shares were disposed of
the indexation allowance is restricted by an amount which is just and reasonable in the circumstances. Detailed instructions are at CG46165+.