Depreciatory transactions. Section 176 TCGA 1992 (formerly s.280 TA 1970).The machinery of section 176 (reduction of allowable loss on a disposal of shares in a company if the company has previously disposed of assets at an undervalue to another group member) applies to reduce the allowable loss after indexation – so the taxpayer does not retain the benefit of the indexation allowance.Andrew Park KC and Hugh McKay appeared for the taxpayer