Skip to content

ACCA Forums

TXChapter 19 - Example 4

MMatthew5y ago
In previous examples of calculating the indexation allowance, it was taken as the indexed cost less the original cost e.g example 3 has indexation allowance of £9,955 - £5,000, however, in the answer to example 4 you have deducted the original cost and the indexed cost from the proceeds to arrive at a chargeable gain of £9,107, should this not be: Proceeds £15,000 Less allowable cost (£2,500) Unindexed gain £12,500 Indexation allowance (£3,393 - £2500) (£893) Chargeable gain £11,607
Sign into reply to this topic.