CG17311 - 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)