Transfer of assets within a group

Indexation

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I understand that when an asset is transferred to a company in the same group, the indexation up to 31 December 2017 can be banked. The company receiving that asset then retains the original cost plus indecation as their base cost. However, if the asset is subsequently sold at a loss in the future, is the loss calculated as the proceeds less the original base cost or proceeds less the indexed cost? Just double checking, as obviously if that asset was sold in the original company indexation would have been restricted so no loss would be created

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By Ruddles
21st May 2024 12:11

You need to restrict the indexation (but not so as to create a chargeable gain)

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