Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Inflationary concerns

05 December 2007 / John Endacott
Issue: 4137 / Categories: Comment & Analysis , Finance Act 2008 , Capital Gains
The announcement of the death of inflation allowance is a matter of concern to all practitioners. JOHN ENDACOTT considers its effect and associated problems


  • Tax provisions to negate the effects of inflation.
  • Is indexation allowance still necessary?
  • Comparing liabilities before and after the abolition of indexation allowance.
  • The effect of a revived retirement relief.

My ecomomics A level and accountancy degree studies were both dominated by concerns over inflation.

It was at a time when the money supply was obsessed about and given titles in line with British motorways and the accountancy principles were based around current cost accounting and indexation of financial statements to take account of the time cost of money across the accounting period.

There had been high inflation in the UK for a number of years and much higher inflation in other parts of the world.

This led to a number of issues for tax purposes such as the need for...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon