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Calculating the cost of a part disposal for CGT

Conflicting advice !

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Evening all ,


When calculating the cost of a part disposal we use the formula A / A + B  where A is the proceeds of sale and B is the value of the asset retained.

Do I use the net proceeds ie after incidental costs of disposal (legal fees etc) or the gross proceeds as A ?

If this disposal is by a Limited company this will obviously affect the amount of indexation if the asset was originally purchased before December 2017


Thanks in advance





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By The Dullard
21st Oct 2021 20:08

There's no such thing as net proceeds. It's a computational fiction that TCGA 1992 simply does not recognise and s 42(2) is perfectly clear; A is the amount or value of the consideration for the disposal and B is the market value of the property that remains undisposed.

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