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Pre 1965 asset disposal |
See Also
Adjustment of profit | Assets held on 31/03/82 | Chargeable gains summary | Disposals | Pre 1965 asset - development land | Pre 1965 part disposal
Select from the following headings:
Background | Developing the schedule | Completing the Schedule | Standard Sub-Schedules | Carry Forward | Related Errors
This schedule is similar to the Assets held at 31/03/82 schedule, however the user should enter the 1965 value of the asset. The schedule calculates the time apportionment allowance and indicates whether a budget day value election might be beneficial. This schedule should not be used where a rebasing election has been made.
This schedule can be developed from the E schedule using the Develop menu and Pre 1965 assets.
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 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)).
Original cost/6 April 65 value/31 March 82 value
The original cost of the asset, its value at 6 April 1965 and 31 March 1982 should be entered. Once the Disposal date has been entered, the system will compute the chargeable gain that arises after 6 April 1965 with reference to the full period of ownership (TCGA 1992 s 54(1)).
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 1992s 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 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.
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 1992s 152(1)).
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.
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. |
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