Let me illustrate the problem with a theoretical example.
Farmer has acres of farmland which cost £1million. He allows a builder access to his land so that builder can build on an adjacent site.
Builder makes such a mess of a field that builder agrees to pay £10,000 compensation to farmer for the damage. Farmer would like to deduct the £10,000 from the £1million cost of the land for CGT purposes utilising TCGA 1992 s242.
TCGA 1992 s242 is concerned with small part disposals of land. But the section starts with "This section applies to a transfer of land......"
Now in this illustration there has not been any transfer of land, just compensation for damage to land.
Do I assume in this case that s242 cannot be used because there has been no "transfer of land". This would then presumably mean applying A/A+B to the £1million cost of the land.