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TCGA92/S56 (2)

Where there is a disposal of an asset for Capital Gains Tax purposes and that disposal is to be treated under any provision of the Capital Gains Tax legislation as one on which neither a gain nor a loss accrues, the indexation allowance is calculated in the normal way on the items of RAE incurred by the person making the disposal. Under TCGA92/S56 (2) the consideration for the disposal is calculated on the basis that there is an unindexed gain, see CG17232, equal to the indexation allowance.

»Ê¹ÚÌåÓýapp main examples of this are

• transfers within a group (TCGA92/S171) and
• transfers between spouses or between civil partners (TCGA92/S58).

More detailed instructions on transfers within groups are at CG46101+.

»Ê¹ÚÌåÓýappre is an example at CG22240 (spouses & civil partners). In exceptional circumstances, for example where enhancement expenditure has been incurred by the transferring spouse or civil partner, it can make a difference to compute on the strictly correct basis rather than adopting the conventional method which treats the two or more taxpayers as if they were one.