# PTC - Chattles - restricting the gain

sarah_d
New MemberPosts:

**10**Registered
i have done a past paper today, and either i am being really stupid or well, i just don't know

Non wasting chattles....Dec 08 paper

sold a painting for 60000 originally bought for £5000. spent £800 cleaning it and £4500 having it re framed

Restrict the gain

5/3(gross proceeds-6000)

5/3(60,000-6,000) = £90,000

How can the gain be more than the proceeds??

This is driving me crazy, i have check the fraction time and time again in my study notes, thinking surely it must be 3/5 giving £32400 but it deff says 5/3

Or is it the lower of gain or ristriction?

Arrrghhh driving me crazy!!

Non wasting chattles....Dec 08 paper

sold a painting for 60000 originally bought for £5000. spent £800 cleaning it and £4500 having it re framed

Restrict the gain

5/3(gross proceeds-6000)

5/3(60,000-6,000) = £90,000

How can the gain be more than the proceeds??

This is driving me crazy, i have check the fraction time and time again in my study notes, thinking surely it must be 3/5 giving £32400 but it deff says 5/3

Or is it the lower of gain or ristriction?

Arrrghhh driving me crazy!!

## Comments

373Registered10Registered158Registered45RegisteredAnd you should only need this formula if the original cost is less than 6000.