Part of asset sold

Hi Jilly,

Here in this case they have given two sales one in 2018
and one in 2024

so here we should care about the gain in 2024 not before that .

Right?

Thanks,

Brandon bought 30 hectares of land on 1 March 2016 for £300,000.

On 1 March 2018, he sold 10 hectares of the land for £150,000. At this, time the remaining land was worth £250,000.

On 1 January 2024, Brandon sold the remaining hectares for £425,600.

Identify Brandon’s chargeable gain and the due date for the capital gains tax payable thereon.

Answer
Proceeds

425,600

Cost x A / A +B=

112,500

Less: cost (W1)

(187,500)

Cost: £300,000

Chargeable gain

238,100

A: £150,000

B: £250,000

Due date: 31 January 2025

£

Cost of 30 Ha

300,000

Cost of 10 Ha

(112,500)

Cost of 20 Ha

187,500