Chapter 3
Calculation of Gain or Loss
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4. Adjustments for inflation (indexation relief)
For disposals made on or after 1 January 2003 indexation relief will only apply for the period of ownership
of the asset up to 31 December 2002.
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Chapter 5
Main Exemptions and Reliefs
1. Indexation
The expenditure allowable in computing the chargeable gain arising on the disposal of an asset
can be increased to take account of inflation for the period of ownership of an asset up to the
31 December 2002 (see Chapter 3, paragraph 4). The increase is, however, subject to limitation in
the case of a disposal of development land (see Chapter 4, paragraph 4). A schedule of the
inflation/indexation multipliers covering the Income Tax years 1995/96 et seq is set out in
Appendix 1.
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