(a) Drogo Ltd You are given the following information about a building services support business -...
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(a) Drogo Ltd You are given the following information about a building services support business - Drogo Ltd for the year ended 30 June 2019: On 1 April 2019, Drogo Ltd had brought forward capital losses of £24,000. On 2 June 2018, Drogo Ltd sold its main business premises for £780,000. The allowable disposal costs were £9,000. The premises were originally bought in June 2000 for £100,000 and were extended in July 2003, at a cost of £120,000. On 1 April 2019, Drogo Ltd bought replacement premises for £500,000 and wishes to claim any rollover relief available from the 2018 sale mentioned above. Requirements: Calculate the total chargeable gain for the year ended 30 June 2019, assuming maximum available rollover relief is claimed and calculate the base cost of the replacement premises purchased in April 2019. (a) Drogo Ltd You are given the following information about a building services support business - Drogo Ltd for the year ended 30 June 2019: On 1 April 2019, Drogo Ltd had brought forward capital losses of £24,000. On 2 June 2018, Drogo Ltd sold its main business premises for £780,000. The allowable disposal costs were £9,000. The premises were originally bought in June 2000 for £100,000 and were extended in July 2003, at a cost of £120,000. On 1 April 2019, Drogo Ltd bought replacement premises for £500,000 and wishes to claim any rollover relief available from the 2018 sale mentioned above. Requirements: Calculate the total chargeable gain for the year ended 30 June 2019, assuming maximum available rollover relief is claimed and calculate the base cost of the replacement premises purchased in April 2019.
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The chargeable gain is the difference between sale proceeds of premises and purchase improv... View the full answer
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