chattels

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Can someone please tell if the 5/8 rule if the chattel cost less than 6,000 but sold for more than 6,000 applies to chattels bought after april 98, or if this rule only applies to indexation relief?
Thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:chattels

    any assets bought after apr 98 gets capital allowances eg business after 2 years have 25% chargable gains before apr 98 its indexation but they should give you this in the exam
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:chattels

    Hi lgarside

    Yes the 5/3 is applied to chattels that have been bought for less than £6,000 but sold for more than £6,000.

    The rules applies regardless of time. The 5/3 rule provides for 'marginal relief' and doesn't impact on the other 'normal' calculations. The 5/3 rule also produces the maximum amount chargable.

    Here is a good resource for anything chattel related:
    http://www.hmrc.gov.uk/manuals/cg4manual/cg76550+.htm

    Regards

    Dean

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