Gurpreet (who prepares accounts to 31 December) pays 3m to acquire a piece of land and then
Question:
Gurpreet (who prepares accounts to 31 December) pays £3m to acquire a piece of land and then pays a further £5m for the construction of a new purpose-built factory on this land. The construction contract was entered into on 1 February 2019 and the factory is first brought into use for trade purposes on 1 July 2020.
Gurpreet uses the factory in his manufacturing trade until 1 May 2035, when he sells it to another business for £11m (including £5m for land). Calculate the SBAs that may be claimed by Gurpreet and by the factory's new owner.
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Eligible expenditure is 5m so SBAs are 3 5m 150000 pa Qualifying ...View the full answer
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