CG17745 | Indexation: disposals 30/11/93+: previous no gain/loss transfer before 30/11/93
From HM Revenue & Customs · Capital Gains Manual
Example
January 1989 A buys land for £150,000
January 1992 A transfers the land at no gain/no loss to spouse
January 1995 spouse sells the land for £130,000 Allowable costs of disposal were £4,000.
COMPUTATION ON A
| - | - | - | £ |
|---|---|---|---|
| - | Disposal proceeds (see note 1) | - | 184,650 |
| Less | Cost | - | 150,000 |
| - | Unindexed gain | - | 34,650 |
| Less | Indexation | January 1989 - January 1992 | - |
| - | - | 150,000 x 0.231 | 34,650 |
| - | CHARGEABLE GAIN/ALLOWABLE LOSS | - | NIL |
COMPUTATION ON SPOUSE
| - | - | - | £ |
|---|---|---|---|
| - | Disposal proceeds | - | 130,000 |
| Less | Cost (see note 1) | 184,650 | - |
| - | Costs of disposal | 4,000 | 188,650 |
| - | Unindexed loss | - | (58,650) |
| Less | Indexation (see note 2) = | - | NIL |
| - | ALLOWABLE LOSS | - | 58,650 |
Note 1: On the no gain/no loss transfer, the asset is disposed of and acquired for such an amount as gives the transferor no gain/no loss, TCGA92/S56 (2).
Note 2: This indexation is subject to the general rule that for disposals on or after 30 November 1993 indexation does not create or increase a loss.