CG50606 - Share identification rules: section 104 holding: indexation allowance
TCGA92/S110
Subject to the important modification described in CG50607, the indexation allowance due is computed by comparing the Retail Prices Index at the date of the operative event (RE) with the Retail Prices Index at the date of the previous operative event (RL) using the formula
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| RE - RL |
|
|
| RL |
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If the RPI has remained the same or fallen no indexation
allowance is due.
Unlike TCGA92/S54(1) there is no requirement to round the
indexation factor to three decimal places. In practice you should
allow taxpayers to use the published indexation factors.
