CGT ((Individuals) chap:14 example:6 pg:93

| QUOTE REPLYApril 7, 2015 at 7:34 pm avatar SHAMIUL Participant Topics: 2 Replies: 0 Dear concern CGT £200000(500000-300000) As all sales proceeds has been reinvested eligible for rollover relief. So £200000 wasn’t deducted from leasehold factory £600000 to get the base cost !! Is that only because leasehold property was sold on February 2015 ? If the sale on feb 2015 wasn’t mentioned then we would have £ (600000-200000)= £ 400000 base cost of leasehold factory .. Is it correct !!! and what happens to the base cost in my given situation. Plz let me know

Dear concern CGT £200000(500000-300000) As all sales proceeds has been reinvested eligible for rollover relief. So £200000 wasn't deducted from leasehold factory £600000 to get the base cost !! Is that only because leasehold property was sold on February 2015 ? If the sale on feb 2015 wasn't mentioned then we would have £ (600000-200000)= £ 400000 base cost of leasehold factory .. Is it correct !!! and what happens to the base cost in my given situation. Plz let me know

Have you listened to the lecture that deals with this example and read the note that precedes the example? When a depreciating asset is purchased the gain is NOT rolled over against the cost of the depreciating asset - here the leasehold property, but is instead deferred until the earlier of the 3 stated events, in this case the subsequent sale of the leasehold property.