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HMRC internal manual

Capital Gains Manual

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+.