17 MAY 2000 - CORPORATION TAX ON CHARGEABLE GAINS: INDEXATION ALLOWANCE: APRIL 2000
The value of the retail prices index, as published by the Office for National Statistics, for April 2000 is 170.1 (January 1987 = 100).
The indexed rise to be used in calculating the indexation allowance in respect of assets disposed of in April 2000 is as follows:
The RI month for disposals on or after 1 April 1985 is the month in which the allowable expenditure was incurred, or March 1982 where the expenditure was incurred on or before 31 March 1982. The table given in this press release is applicable only to bodies within the charge to corporation tax on their chargeable gains.
Individuals and others within the charge to capital gains tax are not entitled to indexation allowance for any period after April 1998.
They should therefore not use the table above. Instead, to calculate indexation allowance up to April 1998 on disposals on or after 6 April 1998, they should use the table published in the Inland Revenue press release of 20 May 1998, which can also be found in the free Inland Revenue booklet CGT 1: Capital Gains Tax – An Introduction, available from any Inland Revenue Enquiry Centre or Tax Office.
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