188体育

G has a ICTA88/S574 disposal in 1994-95 giving rise to an allowable loss of 拢90,000. The indexation loss in respect of the disposal is 拢20,000.

G had no disposals in 1993-94, and has no other disposals in 1994-95.

G鈥檚 income in 1993-94 is 拢35,000 and in 1994-95 is 拢40,000. Relief is claimed against income of both years under ICTA88/S574.

The ICTA88/S574 disposal is the only disposal on which the transitional relief can be given, so the whole of the 拢10,000 limit on the transitional relief is available on this disposal. So G鈥檚 allowable loss under the ICTA88/S574 claim is 拢90,000 + indexation loss (restricted to the limit of transitional relief) 拢10,000, = total 拢100,000.

The amount of the loss which can be set against G鈥檚 income in 1993-94 and 1994-95 is 拢35,000 + 拢40,000 = 拢75,000. The loss used against this income comprises

• in respect of the amount of the loss, apart from the transitional relief,

-	-	Amount
拢75,000 x 90,000	-	= 拢67,500
-	90,000 + 10,000	-
-	in respect of the indexation loss	-
拢75,000 x 10,000	-	= 拢7,500
-	90,000 + 10,000	-

The amounts left after the set-off are

• in respect of the amount of the loss, apart from the transitional relief,

拢90,000 LESS 拢67,500 = 拢22,500

• in respect of the indexation loss,

拢10,000 LESS 拢7,500 = 拢2,500

The indexation loss is not available to carry forward beyond 1994-95. So the amount of the `surplus鈥� loss available for set-off against capital gains in 1995-96 or beyond will be the 拢22,500 only.