1219 - This calculator will help you work out the total of any indexation allowance due

The calculator will work out indexation allowance, if any, for each separate item of expenditure, and the total to include in your computation of a gain.

Indexation allowance gives you an allowance equal to the amount by which the cost of your asset would have risen if its value had kept pace with inflation between the time you acquired it or, if later, 31 March 1982, and April 1998. Any accumulated allowance, up to April 1998, may be taken into account for disposals after that date. There is no indexation allowance on assets acquired after 31 March 1998.

Indexation allowance is calculated separately for each item of cost or improvement expenditure (excluding the incidental costs of disposal) and the total allowance deducted in the computation of your gain.

Indexation allowance can reduce your gain to nil but cannot create or increase the amount of a loss.