PART 1

Direct taxes

Chargeable gains

Freezing of indexation allowance for gains chargeable to corporation tax
26
1
TCGA 1992 is amended as follows.
2
In section 53 (indexation allowance), before subsection (2) insert—
1B
Indexation allowance is not allowed in respect of changes shown by the retail prices indices for months after December 2017.
3
In section 54 (calculation of indexation allowance)—
a
in subsection (1), in the definition of “RD”, for “the month in which the disposal occurs” substitute “ December 2017 ”;
b
before subsection (2) insert—
1B
The references in subsection (1) to an item of allowable expenditure do not include any item of expenditure incurred on or after 1 January 2018.
4
In section 110 (indexation for section 104 holdings for corporation tax)—
a
in subsection (10), in the definition of “RE”, for “the month in which the operative event occurs” substitute “ December 2017 ”;
b
for subsection (11) substitute—
11
The indexed rise is nil if—
a
RE, as defined in subsection (10), is equal to or less than RL, as so defined, or
b
the month referred to in the definition of RL in subsection (10) is after December 2017.
5
In section 114 (consideration for options: corporation tax)—
a
in subsection (2), in the definition of “RO”, for “the month in which falls the date on which the option is exercised” substitute “ December 2017 ”;
b
for subsection (3) substitute—
3
The indexed rise is nil if—
a
RO, as defined in subsection (2), is equal to or less than RA, as so defined, or
b
the month referred to in the definition of RA in subsection (2) is after December 2017.
6
Subject to subsection (7), the amendments made by this section have effect in relation to disposals on or after 1 January 2018.
7
This section does not affect the computation of the amount of so much of any gain as—
a
is treated for the purposes of the taxation of chargeable gains as having accrued on a disposal on or after 1 January 2018, but
b
is taken for those purposes to be equal to the whole or a part of a gain that—
i
would, but for an enactment relating to the taxation of chargeable gains, have accrued on an actual disposal made before 1 January 2018, or
ii
would have accrued on a disposal assumed under such an enactment to have been made before that date.