Alice is in business as a sole trader. On 13 May 2015, she sold a freehold warehouse for £184,000, and this
resulted in a chargeable gain of £38,600. Alice purchased a replacement freehold warehouse on 20 May
2015 for £143,000. Where possible, Alice always makes a claim to roll over gains against the cost of
replacement assets. Both buildings have been, or will be, used for business purposes by Alice.
What is the base cost of the replacement warehouse for capital gains tax purposes?
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question on alice
I have already referred you to the OT course notes and the example that deals with this issue plus the need to work through the notes along with the lectures
could u remind me where it is please thanks you because the post u have put i dont find it?
No problem - if you listen to the lecture on chapter 14 CGT reliefs in conjunction with the OT course notes – specifically example 4 in Chapter 14 then you should have been able to work the answer or at least understand the answer provided.
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