Indexation Relief – relief for inflation
You are allowed increase the original cost of an asset for inflation during the period of ownership up to 31 December 2002.
You cannot increase the cost price for inflation after this date. This was known as indexation relief and was based on the Consumer Price Index rate of inflation. The amount of indexation relief due will be automatically calculated by our Capital Gains Tax Calculator.
However, if the cost of the property reflects development value then you are not allowed increase this part of the cost price for inflation.