CG17483 - Indexation: example
TCGA92/S244
1 March 1983 R buys a field for £18,000.
A grant of planning permission increases its value.
1 March 1989 R sells part for £20,000. The balance is worth £120,000, so this is within the one-fifth limit of TCGA92/S242, and a claim is made, but as the proceeds exceed the consideration TCGA92/S244 applies.
|
|
£ |
||
|
|
Disposal proceeds |
20,000 |
|
|
LESS |
Costs |
18,000 |
|
|
Unindexed gain |
2,000 |
||
|
LESS |
Indexation |
0.351 on 18,000 |
6,318 |
|
INDEXED LOSS |
4,318 |
||
There is no indexation on any subsequent disposal as there is no allowable expenditure left.
