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HMRC internal manual

Capital Gains Manual

Indexation: from 6/4/88 example: unindexed gain of nil

On 1 May 1988 Mr B buys a house for £100,000 including acquisition costs. On 1 June 1992 he sells it for £100,000

It is agreed that TCGA92/S223 (private residence relief, see CG64200+) excludes 3/4 of any gain or loss.

  £    
       
  Disposal Proceeds 100,000  
less Costs 100,000  
  Unindexed Gain NIL  
less Indexation 100,000 x 0.312 31,200
Indexed Loss (31,200)    
The allowable amount is 1/4 of 31,200 (£7,800)