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Capital Gains 

Couple of queries -

1 - Is the '£11k freebe' mentioned in all Capital Gains allowances discussions, just the standard state allowance everybody gets before paying any tax, or an additional allowance on top?

2 - Does annual overall inflation (RPI or CPI not just housing inflation indexes) not have any impact on Capital Gains?  If annual inflation RPI/CPI equals say 3%PA, and I buy at  £200k (including all expenses) and sell 10 years later at say £250k, even without compounding the interest, I would need £260k to have the buying power of  the £200k 10 years ago, so have actually made a £10k loss not a £50k gain.


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  • 2 weeks later...

Hi Mike,


Quick answers;


1 - Not sure I understand the question. So usually you calculate your gain and then take £11,300 (17/18) off, in the same way you'd take your personal allowance from your salary. This is generally only available to individuals.


2 - I believe you are referring to indexation allowance; generally this is only available to organisations. Indexation allowance uses RPI (if I remember correctly), but worth reading the below for better clarification.





Hope this helps.



*caveat... this post does not amount to advice.

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