The Retail Prices Index (RPI), issued by the Office for National Statistics, is used to calculate the indexation allowance for the purposes of calculating capital gains on corporation tax.

Indexation allowance has been frozen for corporate disposals on or after 1 January 2018 at the amount due based on the RPI for December 2017, by legislation in Finance Act 2018. Indexation allowance ceased to be available to individuals from April 1998.

With effect from February 1987 the reference date to which the price level in each subsequent month is related was changed from ‘January 1974 = 100’ to ‘January 1987 = 100’.

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