Wasting Asset V Wasting Chattel

[Jim Davis]

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

Thanks

 

[Ham Slicer]

Re: Wastin Asset V Wasting Chattel

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.

 

[Jim Davis]

Re: Wastin Asset V Wasting Chattel

Thanks

 

[mercman]

Re: Wastin Asset V Wasting Chattel

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

 

[Ham Slicer]

Re: Wastin Asset V Wasting Chattel

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

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