CG17482 | Indexation: example: small part-disposal
From HM Revenue & Customs · Capital Gains Manual
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) |