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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Unit trusts: restriction of indexation allowance: disposals 30/11/93p

As a general rule indexation allowance cannot create or increase a loss on a disposal made on or after 30 November 1993, see CG17700+. Individuals and trusts may be entitled to transitional relief up to a maximum of £10,000 on disposals made on or before 5 April 1995, see CG17800+. TCGA92/S103 was repealed with effect from 30 November 1993. But for the purposes of the transitional relief it continues to have effect. If you have a case involving either section 103 or the transitional arrangements you should make a report to Specialist PT (Capital Gains Technical Group) in Solihull, giving the following details:

  • the name and address of the claimant
  • the name and address of the agent, if any, acting for the claimant
  • the title of the scheme
  • the date of disposal and
  • the `relevant ownership period’, that is, the period as defined in TCGA92/S103 (6) which is

    • from the date of acquisition of the holding, or 1 April 1982 (whichever is the later)
    • to the date of disposal.

NOTE. If a taxpayer is within the charge to Capital Gains Tax, neither indexation allowance nor taper relief apply to disposals of assets on or after 6 April 2008. Previously indexation allowance had been frozen at April 1998. Companies and other concerns within the charge to Corporation Tax are not affected by these changes. For indexation allowance see CG17207+ and for taper relief see CG17895+.