Finance Act 2008

Abolition of indexation allowance U.K.

77 U.K. TCGA 1992 is amended as follows.

78 U.K. At the beginning of Chapter 4 of Part 2 (indexation allowance), insert—

“52A Chapter to apply only for corporation tax purposes

This Chapter applies only for the purposes of corporation tax.”

79 U.K. In section 53 (indexation allowance), omit—

(a) subsection (1A), and

(b) in subsection (4), “, 110A”.

80 (1) Section 54 (calculation of indexation allowance) is amended as follows. U.K.

(2) In subsection (1), for “the relevant month” substitute “ the month in which the disposal occurs ”.

(3) Omit subsection (1A).

81 (1) Section 145 (call options: indexation allowance) is amended as follows. U.K.

(2) In subsection (1), omit “(subject to subsection (1A) below)”.

(3) Omit subsection (1A).

82 U.K. In consequence of the amendments made by paragraphs 77 to 81, omit section 122(1) to (3) and (5) of FA 1998.

83 U.K. The amendments made by paragraphs 77 to 82 have effect in computing gains on disposals made on or after 6 April 2008.