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Posted Wed, 22 Nov 2023 15:46:00 GMT by
a property was purchased in India in 1992 and sold in 2023. Indexed value of the property for the purpose of Indian Income tax is available. Will the same Indexed value be applicable for payment of CGT to HMRC, If not, how will the indexed value be worked out for CGT payment to HMRC.
Posted Thu, 23 Nov 2023 17:32:59 GMT by HMRC Admin 10 Response
Hi
Indexation no longer applies in the UK.
HMRC would be looking at the purchase price, disposal price and any related capital expenses in order to work out any capital gains tax due.
Posted Thu, 23 Nov 2023 22:27:40 GMT by
In this connection, would you please refer to CG17318 as per which Indexation allowance is allowed up to April 1998; it also refers that further taper relief may also be due in calculating the CGT. In this case, the property was purchased in 1992 so should indexing not be available till April 1998 & taper relief after that up to 2018. Thanks
Posted Sat, 02 Dec 2023 21:46:25 GMT by
I await your response.

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