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Non wasting chattels

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Non wasting chattels

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Tax Tutor.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 26, 2021 at 1:56 pm #621821
    rona123
    Member
    • Topics: 9
    • Replies: 5
    • ☆

    Hello sir
    My question is if we have sold a non wasting chattel for 6200 and bought it for 5800 and incurred 300 legal cost…
    Will it considered as the category for which 5/3 rule applies or (5800+300)=6100 or Normal Computation applies…?

    May 26, 2021 at 5:26 pm #621853
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    The 5/3 rule simply computes the MAXIMUM gain – if as in your example the ACTUAL gain is lower then the actual gain will apply – have you used the study notes and lectures?

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