Can somebody please answer this question for me, under corporate chargeable gain,
Is this right to add the cost of an asset and the incidental (Legal fee In connection with purchase) cost of purchase in other to get the indexation allowance which will be used to reduce the chargeable gain? As followed:
Say XYZ, Disposal proceed 450,000
Incidental cost of disposal 6,300
443,700
Cost 200,000
Incidental cost of acquisition: 3,000
203,000
Enhancement cost 40,000 243,000
200,700
Less Indexation
Cost: 203,000 * 0.736 149,408
Enhancement 40,000 * 0.673 26,920
176,328
24,372
Thanks