Question
Banter Ltd purchased 100 acres of land in June 1971 at a cost of 45,000, incurring legal fees on the acquisition of 3,000. Planning permission
Banter Ltd purchased 100 acres of land in June 1971 at a cost of 45,000, incurring legal fees on the acquisition of 3,000. Planning permission was obtained in respect of the land in 1972. The market value at 6 April 1974 was 250,000. Current use value at 6 April 1974 was 95,000. In January 2017, the directors of the company received an offer of 1,000,000 for 50 acres of land, which they accepted. The current use value of the land at the time of the offer was 750,000 and legal fees on the disposal amounted to 3,500. The market value of the remainder of the land at the time of disposal was 1,200,000. The company had capital losses of 6,000 coming forward from prior years. These losses arose on the disposal of shares held in a prominent Irish bank.
Required Calculate the relevant tax arising on the above disposal under the Irish Tax System
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