Wasting Asset V Wasting Chattel

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

Thanks

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

Click to expand...

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.

Re: Wastin Asset V Wasting Chattel

Thanks

Re: Wastin Asset V Wasting Chattel

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

Re: Wastin Asset V Wasting Chattel

mercman said:

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

Click to expand...

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