On 31 December 2021, sulley Ltd sold a warehouse that had always been used in its trade for £500,000. The warehouse cost Sulley Ltd £190,000 in December 2011.
On 31 October 2020, sulley Ltd had purchased a larger warehouse for £570,000 and started using it in its trade immediately.
The indexation factor for December 2011 to December 2017 is 0.162.
What is the amount of rollover relief that Sulley Ltd can claim for the year ended 31 March 2022?
The correct answer is given as 279220 but the rollover relief should be nil because the reinvestment has not occurred within 12 months before the disposal date
This question is from the acca december mock exam
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I have attempted this question but do not understand why the answer is not nil whilst the reinvestment has not occurred within 12 months before the disposal date
It looks like a typo error in the question.
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