Indexation: example: small part-disposal
August 1983 Q bought a field for £60,000.
3 August 1988 the highway authority acquired a `small part’ compulsorily for £8,000. Relief was claimed under TCGA92/S242 as the proceeds were less than one-fifth of the value.
3 August 1991 the field is sold for £62,000.
|less small part-disposal||8,000||52,000|
(The indexation factor for the adjustment, which is 0.243,
represents notional expenditure on 3 August 1988,
|Indexation is||60,000 at 0.565||33,900|
|LESS||8,000 at 0.243||1,944||31,956|