½Û×ÓÊÓƵ

Indexation allowance and rebasing


Produced by Tolley in association with
Corporation Tax
Guidance

Indexation allowance and rebasing


Produced by Tolley in association with
Corporation Tax
Guidance
imgtext

This guidance note explains the general rules surrounding the availability of indexation allowance (which was frozen at December 2017) on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview of the general position regarding company disposals, please refer to the Corporate capital gains ― overview and Calculation of corporate capital gains guidance notes.

Indexation allowance

Indexation allowance is relevant to assets which were acquired before 1 January 2018. It is given to allow for the effect of inflation on the value of assets and is based on the Retail Price Index (RPI). When calculating the tax position on the disposal of a company asset, indexation allowance is deducted from the unindexed gain but can only reduce it to nil. It cannot create or increase a loss.

Indexation allowance has been frozen with effect from 1 January 2018. For disposals made on or after this date, indexation allowance is only given up to December 2017. No indexation allowance is available

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+â„¢
TAKE A FREE TRIAL NOW
Jackie Barker
Jackie Barker

Tax Partner at Wells Associates , Corporate Tax, OMB, Employment Tax, Personal Tax, VAT, IHT Trusts and Estates, Accounting

I have worked in tax since becoming an associate of the CIOT in 2004, having previously qualified as a member of ACCA.As tax partner with Wells Associates I advise on all aspects of direct taxation including personal and corporate planning. We work with a wide range of individuals and owner-managed businesses offering guidance and support at all stages, from assisting with compliance matters through to advising on more complex strategic matters and providing tax efficient solutions.

Powered by
  • 09 Dec 2023 00:20

Home/ ½Û×ÓÊÓƵ Guidance/ Corporation Tax / Preparing the corporation tax return

Popular Articles

Corporation Tax

Research and development expenditure credit (RDEC)

Research and development expenditure credit (RDEC)This guidance note provides information on how research and development expenditure credits (RDEC) are calculated and utilised. The Qualifying expenditure for R&D tax relief guidance note provides information on what expenditure qualifies for

14 Jul 2020 13:24 | Produced by Tolley in association with Will Sweeney Read more Read more
Employment Tax

Loans written off

Loans written offCompanies sometimes provide directors, employees or shareholders with low interest or interest-free loans either as part of the reward package or on special occasions to help the individual meet significant expenditure. The employment income implications of these loans are discussed

14 Jul 2020 12:11 | Produced by Tolley Read more Read more
Employment Tax

Non-business expenses

Non-business expensesIntroductionIn order for an expense to be tax deductible it must be incurred because of an employee’s employment. Any non-business related expense is, therefore, not relievable except in some very particular circumstances.This guidance note deals with three separate issues. The

14 Jul 2020 12:16 | Produced by Tolley Read more Read more