There are a number of situations in which a small capital receipt is not treated as a part-disposal for Capital Gains purposes, but is instead deducted from the expenditure to be taken into account in arriving at the gain or loss on a subsequent disposal. These are listed below. Special rules apply for the purposes of the indexation allowances on the subsequent disposal.

Proceeds less than cost

Where there have been small receipts of this kind in connection with the asset disposed of, the amount of the indexation is reduced as follows.

Compute the indexation without regard to the small capital receipt.

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