Gurpreet (who prepares accounts to 31 December) paid 3m to acquire a piece of land and then

Question:

Gurpreet (who prepares accounts to 31 December) paid £3m to acquire a piece of land and then paid a further £5m for the construction of a new purpose-built factory on this land. The construction contract was entered into on 1 February 2021 and the factory was first brought into use for trade purposes on 1 July 2022.

Gurpreet uses the factory in his manufacturing trade until 1 May 2037, when he sells it to another business for £11m (including £5m for land). Calculate the SBAs that may be claimed by Gurpreet and by the factory’s new owner.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: