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Forums › ACCA Forums › ACCA TX Taxation Forums › Investment property -chargeable gains
On 1 October 2011 an investment property owned by Acebook Ltd was destroyed in a fire. The indexed cost of the property on that date was £138,400. Acebook Ltd received insurance proceeds of £189,000 on 20 October 2011, and on 31 October 2011 the company paid £172,400 for a replacement investment property. Acebook Ltd has made a claim to defer the gain arising from the receipt of the insurance proceeds.
Could someone please explain the answer of this..i din’t get the insurance proceeds part .
Deemed disposal proceed…………189000
Less indexed cost…………………….138400
Gain…………………………………………..50600
Less rollover relife…balancing……34000
Immediately chargable gain……….16600
(189000-172400)