Question 1

Section B: Case 3 - SteelForge Partners

Scenario: SteelForge Partners is a partnership manufacturing specialized alloys. On 1 May 2023, the partnership sold its old factory for £800,000, realizing a chargeable gain of £150,000. On 1 October 2023, they purchased a new factory for £700,000.

Question: If the partnership had instead sold a residential property (not qualifying for PPR) on 1 May 2023, by what date must the Capital Gains Tax on that residential property disposal be paid to HMRC?

Accepted Answer

Recall the special reporting and payment rules for UK residential property. Unlike other assets (where CGT is paid by 31 January following the tax year), CGT on residential property must be reported and paid much sooner.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Selecting 31 January (the normal self-assessment deadline) or 30 days (the old rule).

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA TX — Taxation Practice Exam 5

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