188体育

TCGA92/S46

Mr S purchases from a descendant the copyright over the memoirs of a writer 20 years after the end of the year in which the writer died. That copyright is, therefore, a wasting asset since it now has a predictable life of fifty years, see CG76723. He pays the descendant 拢90,000 for it but does not expect it to have any residual value in fifty years time.

He later sells after twenty years for 拢80,000.

Subject to any incidental expenses, his Capital Gains computation will be:

听	听	听	听	听	拢	听	听	听	听	听
听	Disposal Proceeds	听	听	听	听	80,000	听	听	听	听
Less	Acquisition cost [E(1)]	听	听	听	听	90,000	听	听	听	听
听	T(1)	=	20	=	2	听	听	听	听	听
听	L	听	50	听	5	听	听	听	听	听
听	听	听	听	听	听	听	听	听	听	听
听	[E(1)-S]	=	[90,000-0]	=	90,000	听	听	听	听	听
听	听	听	听	听	听	听	听	听	听	听
听	T(1)	x	[E(1)-S]	=	2	x	90,000	=	36,000	54,000
听	L	听	听	5	听	听	听	听	听	听
听	Gain	听	听	听	听	26,000	听	听	听	听

NOTE. Companies and other concerns within the charge to Corporation Tax may be able to claim indexation allowance see CG17200+.