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TCGA92/S53 (2)(a)

For disposals up to and including 29 November 1993, TCGA92/S53 (2)(a) defines the unindexed gain or loss as the amount of the gain or loss on the disposal, computed in accordance with `this partâ€� of the Act, in other words the provisions which deal with the basic computation. »Ê¹ÚÌåÓýapprefore the first step is to compute the gain or loss on the disposal in accordance with the general principles explained in CG14200+.

Amount of Consideration

Any provision which affects the amount of the disposal consideration such as

• TCGA92/S37, which excludes sums chargeable as income, see CG14300+;
• TCGA92/S17, the market value rule, see CG14530.

is applied at this stage.

Amount of Expenditure

»Ê¹ÚÌåÓýapp same is true of provisions which affect the amount of the expenditure such as

• adjustments to the acquisition costs of a replacement asset because of the roll-over provisions
• adjustments to the acquisition costs of an asset because of gifts hold-over relief (see example in CG17489),
• a restriction of the cost of wasting assets or leases (TCGA92/S46 and TCGA92/SCH8; see CG76700+, CG71141+ and the example in CG17484).

However provisions of this kind are not all dealt with in the same way in computing the RAE (Relevant allowance expenditure), see CG17360, small part-disposals, for example.

Chargeable Gains

»Ê¹ÚÌåÓýapp `unindexed gainâ€� is computed without taking into account any deduction for indexation allowance or for those matters which are taken into account in turning a gain into a chargeable gain. This is made clear at the end of Lord Templeman’s speech in Smith v Schofield (65TC669). Examples are:

• time apportionment, see CG17350
• private residence relief, see CG64200+.

Assets not acquired or no allowable expenditure

»Ê¹ÚÌåÓýapp annual exempt amount, see CG18000+, is applied to the amount remaining after each chargeable gain and allowable loss has been computed, and the allowable losses deducted from the chargeable gains.

Taper Relief

Taper relief, see CG17895+, may be available to individuals, trustees of settlements and personal representatives (but not companies) who make disposals between 6 April 1998 and 5 April 2008. Where the asset was acquired prior to April 1998 any indexation is allowed first, as a deduction, in arriving at the amount of the untapered chargeable gain.