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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Indexation: example: asset acquired before 6/4/65

5 August 1984 it is sold for £40,000.

(Indexation on disposals at this time was based on original cost only. See point (v).of the ‘Main differences from 1988 provisions’ within CG17540.)

      £
       
  disposal proceeds   40,000
LESS cost   10,000
  unindexed gain   30,000
LESS indexation 10,000 x 0.132 1,320
  INDEXED GAIN   28,680
Time-apportioned   232/288 x 28,680  
  CHARGEABLE GAIN   23,103