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chargeable gains

This topic has 3 replies, 3 voices, and was last updated 6 years ago by Tax Tutor.

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August 29, 2018 at 9:52 am #469988
gracious
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Neil bought a factory for use in his business in NOV 2001 for 75000.The factory was sold for 125000 on 10 /08/2008.On 1/06/2009, Neil bought some fixed plant and machinery for use in his business , costing 160000.
Neil sold the plant and machinery for 140000 on 7/12/2017.
Required
What is the Neil’s Net Chargeable gain or allowance loss for the tax year 2017/18?
a) loss of 20000
b) loss of 70000
c) Gain of 30000
d)Gain of 50000
Help Sir
August 30, 2018 at 5:03 pm #470190
snoopdog
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Is Neil a sole trader individual as he will have the Annual exemption allowance. Limited companies have indexation allowance but this ceased April 2018.A gain can be deferred by roll over relief if the full proceeds are reinvested in a non wasting asset
August 30, 2018 at 5:06 pm #470191
snoopdog
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The proceeds must be invested within 36 months otherwise the gain is chargeable
August 31, 2018 at 2:55 am #470254
Tax Tutor
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Snoopdog thank you for trying to help a fellow student but it would be best if you leave this forum to me.
Gracious – what do you think is the issue being tested here and what is it about the model answer that you do not understand?
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