In February 2011, Maria bought a diamond necklace for 13,500. In 2014 the necklace was stolen and,
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In February 2011, Maria bought a diamond necklace for £13,500. In 2014 the necklace was stolen and, as a result, an insurance payment of £14,000 was received in February 2015. In the same month, Maria spent £14,750 on the purchase of a replacement necklace and claimed that the disposal of the original necklace should give rise to neither a gain nor a loss. Compute the chargeable gain arising in January 2021 when the replacement necklace was sold for £20,000.
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The gain arising on the theft of the original necklace would have b...View the full answer
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