Timberlake Ltd prepares accounts to 31 March each year. The company made the following disposals of chargeable
Question:
Timberlake Ltd prepares accounts to 31 March each year. The company made the following disposals of chargeable assets in the year to 31 March 2018:
(i) In February 2018 , a rare Bentley motor car used by the company's Managing Director was sold for £750,000. This car had cost £300,000 in November 2003.
(ii) In October 2017 , an office building was sold for £6 70,000. The building had been acquired in January 1979 for £100,000 and was extended in July 1981 at a cost of
£10,000 and again in September 1988 at a cost of £40,000. The market value of the building on 31 March 1982 was £135,000.
(iii) In June 2017, a plot of land was sold for £120,000. This land had cost £42,000 in November 2003 and had been used for trade purposes.
In June 2004, the company had sold land for £50,000 and had made a claim for rollover relief in relation to this disposal. This land had cost £10,000 in October 1999 and had been used for trade purposes.
(iv) In August 2017 , gilt-edged stocks bought for £100,000 in January 2008 were sold for £110,500.
(v) In June 2017, plant and machiner y bought for £19,500 in June 2016 was sold for
£22,500. In March 2 018, plant and machinery bought for £16,000 in March 2014 was sold for £9,000. Capital allowances had been claimed in relation to both of these items.
(vi) In February 2018 , the company sold 500 ordinary shares in Theta plc for £10 per share. Timberlake Ltd had bought ordinary shares in Theta plc as follows:
Timberlake Ltd has elected that assets acquired before 31 March 1982 should be treated as if acquired on 31 March 1982 a t a cost equal to their market value on that date. The company had capital losses brought forward of £156,200 on 1 April 2017.
Required:
(a) Compute the chargeable gain or allowable loss arising on each of the disposals made during the year to 31 March 2018. Assume Retail Price Indices as follows:
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