SolvedCG17480 | Indexation: example: asset acquired before 6/4/65
From HM Revenue & Customs · Capital Gains Manual
5 August 1984 it is sold for £40,000.
(Indexation on disposals at this time was based on original cost only. See point (v).of the ‘Main differences from 1988 provisions’ within CG17540.)
| - | - | - | £ |
|---|---|---|---|
| - | disposal proceeds | - | 40,000 |
| Less | cost | - | 10,000 |
| - | unindexed gain | - | 30,000 |
| Less | indexation | 10,000 x 0.132 | 1,320 |
| - | INDEXED GAIN | - | 28,680 |
| Time-apportioned | - | 232/288 x 28,680 | - |
| - | CHARGEABLE GAIN | - | 23,103 |