188ÌåÓý

Indexation allowance

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provides that the apportionment of the cost on a part disposal is to be made before the indexation allowance is computed, seeÌýCG17352.ÌýÌý

For disposals on or after April 2008 indexation was withdrawn altogether for non-corporateÌýentities.

For companies within the charge to corporation tax indexation was frozen from December 2017, see CG17207.

Restriction of losses: capital allowances � s41

Under , in the case of an asset subject to capital allowances, the apportionment underÌýCG12731Ìýshould be made first and capital allowances taken into account only to the extent that they relate to the part being disposed of.

If there has been a previous part disposal at a loss and on that disposal capital allowances have been used to restrict the allowable loss, then only the balance of the capital allowances should be used to restrict any further loss on the disposal of the asset in full or in part, seeÌýCG15400+.

Composite acquisition � s52(4)

Under , where the asset disposed of was obtained with other assets as part of a composite acquisition (for example, a single contract of purchase at an inclusive price embracing more than one asset), the acquisition price should be apportioned to the respective assets broadly by reference to their market values at the date of acquisition. But where

• a part disposal of a holding of shares follows the reorganisation or reduction of a company’s share capital, seeÌýCG51890+, or
• land is acquired by inheritance or gift, seeÌýCG71804, or
• a business is transferred as a going concern, seeÌýCG68050.

If agreement of the apportionment cannot be reached, and one or more of the assets is land in the UK, the assistance of the Valuation Office Agency (“VOAâ€�) should be sought, seeÌýCG74000+.