INLAND REVENUE Inland Revenue Press Release 85/98 issued on 20 May 1998 CAPITAL GAINS TAX INDEXATION ALLOWANCE: APRIL 1998 The value of the retail prices index, as published by the Office for National Statistics, for April 1998 is 162.6 (January 1987 = 100). The indexed rise to be used in calculating the indexation allowance in respect of assets disposed of in April 1998 is as follows: RI MONTH RI YEAR 1982 1983 1984 1985 1986 1987 1988 January - 0.968 0.872 0.783 0.689 0.626 0.574 February - 0.960 0.865 0.769 0.683 0.620 0.568 March 1.047 0.956 0.859 0.752 0.681 0.616 0.562 April 1.006 0.929 0.834 0.716 0.665 0.597 0.537 May 0.992 0.921 0.828 0.708 0.662 0.596 0.531 June 0.987 0.917 0.823 0.704 0.663 0.596 0.525 July 0.986 0.906 0.825 0.707 0.667 0.597 0.524 August 0.985 0.898 0.808 0.703 0.662 0.593 0.507 September 0.987 0.889 0.804 0.704 0.654 0.588 0.500 October 0.977 0.883 0.793 0.701 0.652 0.580 0.485 November 0.967 0.876 0.788 0.695 0.638 0.573 0.478 December 0.971 0.871 0.789 0.693 0.632 0.574 0.474 1989 1990 1991 1992 1993 1994 1995 January 0.465 0.361 0.249 0.199 0.179 0.151 0.114 February 0.454 0.353 0.242 0.193 0.171 0.144 0.107 March 0.448 0.339 0.237 0.189 0.167 0.141 0.102 April 0.423 0.300 0.222 0.171 0.156 0.128 0.091 May 0.414 0.288 0.218 0.167 0.152 0.124 0.087 June 0.409 0.283 0.213 0.167 0.153 0.124 0.085 July 0.408 0.282 0.215 0.171 0.156 0.129 0.091 August 0.404 0.269 0.213 0.171 0.151 0.124 0.085 September 0.395 0.258 0.208 0.166 0.146 0.121 0.080 October 0.384 0.248 0.204 0.162 0.147 0.120 0.085 November 0.372 0.251 0.199 0.164 0.148 0.119 0.085 December 0.369 0.252 0.198 0.168 0.146 0.114 0.079 1996 1997 1998 January 0.083 0.053 0.019 February 0.078 0.049 0.014 March 0.073 0.046 0.011 April 0.066 0.040 - May 0.063 0.036 - June 0.063 0.032 - July 0.067 0.032 - August 0.062 0.026 - September 0.057 0.021 - October 0.057 0.019 - November 0.057 0.019 - December 0.053 0.016 - The RI month for disposals by individuals on or after 6 April 1985 (1 April 1985 for companies) is the month in which the allowable expenditure was incurred, or March 1982 where the expenditure was incurred before that month. Finance (No 2) Bill The Finance (No 2) Bill, presently before Parliament, provides for indexation to be frozen from April 1998 for those within the charge to capital gains tax. Subject to the outcome of Parliamentary scrutiny, the proposals will mean that for assets acquired before April 1998 and disposed of after 5 April 1998, the figures for the indexed rise will be as set out in the table above, as if there had been a disposal in April 1998. No indexation allowance will be available for any period after April 1998. Companies which are charged to corporation tax on their capital gains, are not affected by these proposals. The monthly press release will continue to be published enabling companies to determine the indexation allowances applicable to their disposals. http://www.open.gov.uk/inrev/irhome.htm