# Wasting Asset V Wasting Chattel



## Jim Davis (31 Jul 2008)

Can anyone explain the difference between the two and the treatment of each one for CGT purposes?

Thanks


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## Ham Slicer (1 Aug 2008)

*Re: Wastin Asset V Wasting Chattel*



Jim Davis said:


> Can anyone explain the difference between the two and the treatment of each one for CGT purposes?
> 
> Thanks




Wasting = life of < 50 yrs

Chattel = tangible moveable property

Wasting Chattel - example a car - no cgt will arise on any gain

Wasting Asset - a cgt liability may arise.  Not a chattel obviously.  Example an option to buy a premises within 10 yrs for 10K.  If individual sells option after 4 yrs his allowable cost is 6K.  He has enjoyed the benefit of the first 4 yrs and this period and expenditure is now wasted.


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## Jim Davis (1 Aug 2008)

*Re: Wastin Asset V Wasting Chattel*

Thanks


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## mercman (1 Aug 2008)

*Re: Wastin Asset V Wasting Chattel*

Ham Slicer - how is the allowable cost 6k ??


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## Ham Slicer (1 Aug 2008)

*Re: Wastin Asset V Wasting Chattel*



mercman said:


> Ham Slicer - how is the allowable cost 6k ??



It's the unused part of the 10K cost (6 yrs)


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