Wasting Chattels

I am just going through the bbp personal Tax book for FA 2015 and on they give the following example on non wasting chattels.

Magee purchased an antique desk for £8,000. She sold it at auction for £4,750 net of auctioneer's fees of 5% in November.

In it they have calculated the incidental cost of disposal as (250) by doing 5/95 of £4,750. Why 5/95 and not 5% of £4,750?

Thank you for your help.


  • rakeshsuwal
    rakeshsuwal Registered Posts: 79
    I haven't studied PTAX yet, but looking at the question the figure 4750 is net, which means after the auctioneer fee. So is 95% net. Now to find the incidental cost of disposal which is 5% you will use 4750/95*5, which will result in 250. If any question pls ask.
    Kind regards.
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