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
Ask the Tutor ACCA TX-UK
chargeable gains
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
The proceeds must be invested within 36 months otherwise the gain is chargeable
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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