CG17482 - Indexation: example: small part-disposal
August 1983 Q bought a field for £60,000.
3 August 1988 the highway authority acquired a `small part' compulsorily for £8,000. Relief was claimed under TCGA92/S242 as the proceeds were less than one-fifth of the value.
3 August 1991 the field is sold for £62,000.
|
|
£ |
|||
|
|
Sale proceeds |
62,000 |
||
|
LESS |
Costs |
60,000 |
|
|
|
|
less small part-disposal |
8,000 |
52,000 |
|
|
|
Unindexed gain |
|
10,000 |
|
|
(The indexation factor for the adjustment, which is 0.243, represents |
||||
|
notional expenditure on 3 August 1988, see CG17360.) |
||||
|
|
Indexation is |
60,000 at 0.565 |
33,900 |
|
|
|
LESS |
8,000 at 0.243 |
1,944 |
31,956 |
|
ALLOWABLE LOSS |
(21,956) |
|||
