Page 97 - P6 Slide - Taxation - Lecture Day 1

Roll-overs

THEN

Depreciable asset

Capital gain over period of

allowance

If asset is replaced by > 1 asset

Apportion capital gain between

replacement assets
l

If replacement asset sold before full capital gain has been taxed: portion of capital gain not

yet taxed – part of capital gain of disposal of replacement asset

If cease to use replacement asset for purpose of trade: portion of capital gain not yet taxed –
will be taxed as a capital gain