RELEVANT TO ACCA QUALIFICATION PAPER F UK ACCA CHARG - PDF document

________ ¥ The set off of the brought forward capital losses is restricted to £7,000 (17,600 Ð qualify, and the qualifying conditions must have been met for a similar period. Example 6 On 15 October 2012 the four shareholders of Alphabet Ltd, an unquoted trading company, Bill and Cathy Dew are a married couple. They disposed of the following assets during the tax year 2012Ð13: ¥ On 10 July 2012 Bill and Cathy sold a house for £380,000. The house had been purchased on 1 December 2009 for £290,000, and has never been occupied as their main residence. ¥ On 5 August 2012 Bill transferred his entire shareholding of 20,000 £1 ordinary shares in Elf plc to Cathy. On that date the shares were valued at £64,000. BillÕs shareholding had been purchased on 21 September 2010 for £48,000. Example 13 Giles sold the following assets during the tax year 2012 giving an allowable cost of £22,600. ¥ Since the proceeds are also £22,600, the disposal is on a no gain, no loss basis. Wasting assets A wasting asset is one which has a remaining useful life of 50 years or less. The cost of such an asset must be adjusted for the expected depreciation over the life of the Example 14 On 31 March 2013 Mung sold a copyright for £9,600. The copyright had been purchased on 1 April 2008 for £10,000 when it had an unexpired life of 20 years. The chargeable gain on the copyright is as follows: Example 19 Continuing with Example 18, assume that Hue let her house out during the periods that she did not occupy it. The chargeable gain on the house will now be as follows: £ Disposal proceeds 381,900 Cost (141,900) __________ 240,000