1 March 1983 R buys a field for £18,000.
A grant of planning permission increases its value.
1 March 1989 R sells part for £20,000. The balance is worth £120,000, so this is within the one-fifth limit of TCGA92/S242, and a claim is made, but as the proceeds exceed the consideration TCGA92/S244 applies.
|LESS||Indexation||0.351 on 18,000||6,318|
There is no indexation on any subsequent disposal as there is no allowable expenditure left.