A company made the following disposals during the year to 31 March 2024: (a) A factory building

Question:

A company made the following disposals during the year to 31 March 2024:

(a) A factory building was sold for £650,000 on 13 June 2023. This building had cost £300,000 in August 2000 (RPI 170.5)

and was extended in July 2002 (RPI 175.9) at a cost of £50,000.

(b) An office building was sold for £1,100,000 on 15 September 2023 and was then immediately replaced by another office building costing £1,050,000. The building sold in September 2023 had cost £600,000 in February 2003 (RPI 179.3).

Rollover relief was claimed on the disposal of this building.

(c) A computer system was given to UK charity on 14 July 2023. This computer system had cost £5,000 in September 2017

(RPI 275.1) and had a market value of £500 in July 2023. Capital allowances had been claimed in relation to the computer system.

(d) A motor car was sold for £80,000 on 12 June 2023. The car had cost £100,000 in June 2020. Capital allowances had been claimed.

(e) An item of movable plant and machinery was sold for £30,000 on 16 September 2023. This item had cost £70,000 in January 2016 (RPI 258.8). Capital allowances had been claimed in relation to the item.

(f) 8,000 ordinary shares in Exxak plc were sold for £80,000 on 18 December 2023. Shares in Exxak plc had been bought as follows:

(g) Government securities were sold for £40,000 on 17 October 2023. These securities had cost £45,000 in October 2016 (RPI 264.8).

The RPI for December 2017 was 278.1.

Required:

Compute the chargeable gain or allowable loss arising on each of the above disposals and outline any other corporation tax consequences of each disposal. Also compute the net chargeable gains figure which should be included in the company's taxable total profits for the year to 31 March 2024.

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