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Question in chargeable disposal of chattels.

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Question in chargeable disposal of chattels.

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by JillyB.
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  • Author
    Posts
  • February 15, 2024 at 7:53 pm #700446
    nothemsworth
    Participant
    • Topics: 2
    • Replies: 1
    • ☆

    This is the question that I found on the ACCA Study Hub:

    Louise bought an antique table for £2,500 in May 1998. In September 2022 she sold it for £6,500 (before deducting selling costs of £100).

    Required:
    (a) Calculate the chargeable gain arising in the tax year 2022–23.

    (b) Calculate the chargeable gain arising in the tax year 2022–23 if gross sale proceeds were £11,500.

    My doubt is, how do I know if the antique table is a wasting chattel or a non-wasting chattel?
    If it is a wasting chattel (which it isn’t in the answer), it is exempt from CGT. Whether below £6000 or above, all wasting chattels, are exempt (except for p&m with CA).

    If the table is a non-wasting chattel, then the rules of 6000 limit apply.

    So how do I know?

    February 16, 2024 at 5:37 pm #700508
    JillyB
    Keymaster
    • Topics: 0
    • Replies: 899
    • ☆☆☆☆

    If the question is asking the obvious chattel rules then just answer it and dont worry.

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