Trying to calculate the indexation allowance on a capital gain and am confused by the outcome.
the RPI at point of sale was .05 and at point of purchase was .083. THerefore the calulation should be (.05-.083)/.083. This produces a negative is the ignored or do you add the outcome rather than deduct it ie the gain was 900. therefore is the taxable liability 1258 or 544?
Any suggestions will be greatly appreciated.