Page 61 - P6 Slide - Taxation - Lecture Day 1

Standard Proceeds formula (par 30(2))

• Apply BOTH standard formulae if expenses incurred before AND

on/after 1 Oct 2001

• Standard proceeds formula determines the proceeds derived from

qualifying expenditure incurred before 1 October 2001.

• Thereafter, the standard TAB formula provided in par 30(1) is

applied to determine the valuation date value.

P Proceeds to be used in standard TAB formula (par 30(1))

R Real/actual proceeds from disposal (less certain selling exp)

B Par 20 qualifying exp before 1 Oct 2001

A Par 20 qualifying exp on/after 1 Oct 2001