Related Commentary  Related HMRC Manuals

54(1)  Subject to any provision to the contrary, the indexation allowance is the aggregate of the indexed rise in each item of relevant allowable expenditure; and, in relation to any such item of expenditure, the indexed rise is a sum produced by multiplying the amount of that item by a figure expressed as a decimal and determined, subject to subsections (2) and (3) below, by the formula–

(RD – RI)


RDis the retail prices index for December 2017; and

RIis the retail prices index for March 1982 or the month in which the expenditure was incurred, whichever is the later.

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