CG46131 - 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+.