Taxation of Chargeable Gains Act 1992 section 110A

Indexation for section 104 holdings: capital gains tax

Section 110A provided rules for applying indexation allowance to pooled shareholdings (known as section 104 holdings) for capital gains tax purposes, but was removed from the legislation for disposals made on or after 6 April 2008.

• This section dealt with how indexation allowance was calculated for pooled share holdings (section 104 holdings) when computing capital gains tax liabilities.
• The section was originally introduced by the Finance Act 1998, section 125(2), to provide specific indexation rules for individuals and other capital gains tax payers holding pooled shares.
• The section was omitted by Finance Act 2008, section 8 and Schedule 2, paragraph 92, as part of the wider capital gains tax reform that took effect from 6 April 2008.
• From 6 April 2008, the flat rate of capital gains tax replaced the previous regime of indexation allowance and taper relief for individuals, making this section redundant.

---