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 2024:
(i) In February 2024, 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 2007.
(ii) In October 2023, an office building was sold for £680,000. The building had been acquired in March 1987 for £170,000 and it was extended in September 1988 at a cost of £40,000.
(iii) In June 2023, a plot of land was sold for £120,000. This land had cost £42,000 in November 2004 and had been used for trade purposes.
In June 2005, 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 2023, gilt-edged stocks bought for £100,000 in January 2008 were sold for £110,500.
(v) In June 2023, plant and machinery which was bought for £19,500 in August 2022 was sold for £22,500. In March 2024, plant and machinery bought for £16,000 in March 2017 was sold for £9,000. Capital allowances had been claimed in relation to both of these items.
(vi) In February 2024, 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 had capital losses brought forward of £156,200 on 1 April 2023.
Required:
(a) Compute the chargeable gain or allowable loss arising on each of the disposals made during the year to 31 March 2023.
Assume Retail Price Indices as follows:
(b) Compute the chargeable gains figure which should be included in the company's taxable total profits for the year to 31 March 2024.
Step by Step Answer: