INLAND REVENUE Inland Revenue Press Release 94/98 issued on 17 June 1998 CAPITAL GAINS TAX INDEXATION ALLOWANCE: MAY 1998 The value of the retail prices index, as published by the Office for National Statistics, for May 1998 is 163.5 (January 1987 = 100). The indexed rise to be used in calculating the indexation allowance in respect of assets disposed of in May 1998 is as follows: RI MONTH RI YEAR 1982 1983 1984 1985 1986 1987 1988 January - 0.979 0.883 0.793 0.699 0.635 0.583 February - 0.971 0.875 0.778 0.692 0.628 0.577 March 1.058 0.967 0.869 0.762 0.690 0.625 0.571 April 1.018 0.940 0.844 0.725 0.674 0.606 0.545 May 1.003 0.932 0.838 0.717 0.671 0.605 0.540 June 0.998 0.927 0.833 0.714 0.672 0.605 0.534 July 0.997 0.917 0.835 0.717 0.677 0.606 0.532 August 0.996 0.908 0.818 0.712 0.671 0.601 0.515 September 0.998 0.900 0.814 0.713 0.663 0.597 0.508 October 0.988 0.893 0.803 0.710 0.661 0.589 0.493 November 0.978 0.887 0.798 0.705 0.647 0.581 0.486 December 0.982 0.882 0.799 0.702 0.641 0.583 0.482 1989 1990 1991 1992 1993 1994 1995 January 0.473 0.368 0.256 0.206 0.186 0.157 0.120 February 0.462 0.360 0.249 0.200 0.178 0.151 0.113 March 0.456 0.347 0.244 0.196 0.174 0.147 0.108 April 0.430 0.307 0.228 0.178 0.163 0.134 0.097 May 0.422 0.296 0.225 0.174 0.159 0.130 0.093 June 0.417 0.290 0.219 0.174 0.160 0.130 0.091 July 0.416 0.289 0.222 0.178 0.162 0.135 0.097 August 0.412 0.276 0.219 0.177 0.157 0.130 0.091 September 0.402 0.265 0.215 0.173 0.152 0.128 0.086 October 0.391 0.255 0.210 0.169 0.153 0.126 0.091 November 0.380 0.258 0.206 0.170 0.155 0.125 0.091 December 0.376 0.259 0.205 0.175 0.152 0.120 0.085 1996 1997 1998 January 0.089 0.059 0.025 February 0.083 0.055 0.020 March 0.079 0.052 0.017 April 0.071 0.046 0.006 May 0.069 0.042 - June 0.069 0.038 - July 0.073 0.038 - August 0.068 0.032 - September 0.063 0.026 - October 0.063 0.025 - November 0.062 0.024 - December 0.059 0.022 - 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 in the press release of 20 May 1998, as if there had been a disposal in April 1998. No indexation allowance will be available for any period after April 1998. All bodies within the charge to corporation tax on their capital gains are not affected by these proposals. The monthly press release will continue to be published enabling these bodies to determine the indexation allowances applicable to their disposals.