Skip to content

Ask the Tutor ACCA TX-UK

Part of asset sold

ASalawi sayed1y ago
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
JJill1y ago#1
Yes you're being asked to deal with the gain in 2024 but what happened before has an impact on the figures you use in 2024.
ASalawi sayed1y ago#2
Thanks.
JJill1y ago#3
no worries - all the best with your exam
Sign into reply to this topic.