Indexation: disposals 30/11/93+: previous no gain/loss transfer before 30/11/93
- January 1989 A buys land for £150,000
- January 1992 A transfers the land at no gain/no loss to spouse
- January 1995 spouse sells the land for £130,000 Allowable costs of disposal were £4,000.
COMPUTATION ON A
|Disposal proceeds (see note 1)||184,650|
|LESS||Indexation||January 1989 - January 1992|
|150,000 x 0.231||34,650|
|CHARGEABLE GAIN/ALLOWABLE LOSS||NIL|
COMPUTATION ON SPOUSE
|LESS||Cost (see note 1)||184,650|
|Costs of disposal||4,000||188,650|
|LESS||Indexation (see note 2) =||NIL|
Note 1: On the no gain/no loss transfer, the asset is disposed of and acquired for such an amount as gives the transferor no gain/no loss, TCGA92/S56 (2).
Note 2: This indexation is subject to the general rule that for disposals on or after 30 November 1993 indexation does not create or increase a loss.