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capital gain group

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › capital gain group

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Tax Tutor.
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  • November 21, 2016 at 3:49 pm #350375
    rakhi2rakhi
    Member
    • Topics: 26
    • Replies: 7
    • ☆

    Sir i understand that assets within capital gain group members are transferred at no loss/no gain . So if the cost of of an asset is £100000 and indexed cost is £130000 at the date of transfer to group member company,its base cost will be £130000 to the company acquiring the asset. But what happens if first company sold the asset to its group member company at £150000. Deemed proceed will be 130000 as above but how is £150000 which company received from group member company is accounted for?

    November 22, 2016 at 8:46 am #350570
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    Assets will for accounting purposes most likely be transferred at open market value but for TAX purposes they are treated as no gain no loss transfers!

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