CG17483 | Indexation: example
From HM Revenue & Customs · Capital Gains Manual
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.