Error
How to
solve it
Gains rolled into the acquisition of an asset should be entered in the software as a negative number in order to reduce the base cost of the asset. This error can be resolved by clicking the
button.
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Assets held on 31/03/82 |
See Also
Adjustment of profit | Chargeable gains summary | Disposals
Select from the following headings:
Background | Developing the schedule | Completing the Schedule | Standard Sub-Schedules | Carry Forward | Related Errors
For assets held on 31 March 1982, in addition to the information required for assets acquired after that date, the user must also add details of the market value of the asset on 31 March 1982. The software will then calculate the indexed gain by reference to both the cost and the market value, and will return the correct gain to the summary on the Chargeable gains summary schedule. This schedule should not be used where a rebasing election has been made.
The schedule is developed from the E schedule.
Some of the cells are described in more detail as follows:
Description
A description of the asset should be entered in the cell provided below the schedule title. This will then appear on the Chargeable gains summary schedule.
Date of disposal
The date of disposal should be entered in the cell below the Date column heading in the format dd/mm/yyyy or mm/yyyy, as indexation is calculated with reference to the month of purchase and disposal.
Proceeds/Incidental selling costs
Where appropriate, the sale proceeds should be linked through as a negative amount from the Fixed asset disposal schedule. Similarly items identified on the income and expense analysis schedules should be linked through into the series of Incidental selling costs cells, which will reduce the disposal proceeds taken into account to derive the Net proceeds figure.
Date of acquisition
The date of acquisition should be entered in the cell below the Date column heading in the format dd/mm/yyyy or mm/yyyy. The software will calculate the indexation allowance based on the Retail Price Index ( TCGA 1992 s 53(1)(b)).
Acquisition cost/Incidental acquisition costs
This requires the user to input the cost of the asset disposed of along with any incidental costs of disposal. Costs of acquisition would include professional fees or commissions, costs of conveyancing and advertising costs (TCGA 1992 s 38(1)(a) ) & TCGA 1992 s 38(1)(c)).
Gains rolled in
Enter any gains rolled over into the acquisition cost of the asset in the data entry cell provided.
Where an amount has been reinvested equating to the disposal proceeds less any incidental costs on disposal, any chargeable gain on the old asset is reduced to nil and the base cost of the new asset is reduced by the rolled over gain (TCGA 1992 s 152(1)).
Market value
Enter the market value of the asset as at 31 March 1982. The software will then use this in its calculations to derive the capital gain or loss or whether a no gain/no loss situation arises.
Enhancement expenditure
If there has been any enhancement expenditure in the period since acquisition, the user must input details of the amount and the date on which it was carried out (TCGA 1992 s 38(1)(b)). The software will then calculate the indexation allowance available and the overall gain, which will automatically feed through to the Chargeable gains summary schedule and therefore to the Adjustment of profit.
Foreign tax paid
Where this data entry cell is completed, this will enable a Deduct foreign tax selector flag at the foot of the schedule, set by default to 'No', which may be changed in order to treat the foreign tax as a deduction. This can then be used to reduce the gain (TCGA 1992 s 278) or increase the base cost if the gain is rolled over.
A further data entry cell, Foreign tax eligible for credit, will also be enabled.
Capital losses reduced by capital allowances claimed
In computing the allowable loss, the March 1982 value and additional costs are restricted by the capital allowances which have been given.
To deal with this in the software, the amount entered as acquisition cost or
enhancement expenditure should simply be reduced by the amount which is non-allowable
due to the claiming of capital allowances. If necessary, the entry can have
a note appended to it, to explain the reduction in amount.
The restriction only applies to computation of a loss. If exclusion of the amounts
results in a gain being calculated, then it is necessary to adjust the computation
so that a gain is not shown.
This schedule has no standard supporting schedules.
This schedule does not carry forward.
Error | How to
solve it |
| Not in period! | The date the asset was transferred must be before the end of the accounting period. For FY 2005 files and onwards where the asset was disposed of before the start of the accounting period it is possible to override the error where s.179 TCGA applies by means of a selector on the schedule. |
| Gains rolled in cannot exceed cost | Chargeable gains rolled into a new asset must not exceed the total acquisition cost of the asset. |
| Gains rolled in are negative! | Gains rolled into the acquisition of an asset should be entered in the software as a negative number in order to reduce the base cost of the asset. This error can be resolved by clicking the
|
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