Indexation: example: assets held at 31 March 1982
12 March 1979 X buys a field for £100,000.
31 March 1982 value is £85,000.
12 March 1989 X sells field for £80,000.
|LESS||Indexation||100,000 x 0.414||40,400|
It is clear that the kink test, using the greater original cost of £100,000, will give a greater loss than rebasing does. This is the most common instance after 31 March 1982 of indexation and cost being based on different figures apart from those no gain/no loss situations to which rebasing does not apply.