Depreciating assets and illustration
You'll learn how depreciating assets are treated differently under rollover relief rules, and why this distinction matters for your tax calculations.
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In this lesson
- 0:00 Depreciating assets and rollover relief
- 0:20 How gains are frozen on depreciating assets
- 1:01 Warehouse to plant machinery example
- 2:00 Calculating chargeable gain step by step
About this lesson
In this lesson, you'll discover that when you reinvest proceeds into a depreciating asset (like plant and machinery), the gain is frozen rather than rolled over into a new base cost. You'll work through the key rules: gains are taxed on the earliest of three dates — when the depreciating asset is sold, when it stops being used in the trade, or ten years after acquisition. Through a worked example involving a warehouse sale and reinvestment in plant and machinery, you'll see exactly how to identify which proceeds are taxable immediately and which gains are deferred, equipping you to handle these common exam scenarios with confidence.
Duration: 3m
Transcript
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