Short leases: disposal: indexation allowance
Indexation allowance is due on items of ‘relevant allowable expenditure’. In the context of the disposal of short leases, this means the expenditure after the reductions made in accordance with TCGA92/SCH8/PARA1 (4) have been made.
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+.