Question

1 On 10 January 2015, a freehold property owned by Winifred was damaged by a fire. The property had been purchased on 29 May 2002 for £73,000. Winifred received insurance proceeds of £37,200 on 23 February 2015, and she spent a total of £41,700 during March 2015 restoring the property. Winifred has elected to disregard the part disposal. What is the base cost of the restored freehold property for capital gains tax purposes? A £68,500 B £77,500 C £114,700 D £35,800

Answer 1

Q- What is the base cost of the restored freehold property for capital gains tax purpose?

Answer- B) 77,500

41,700- 37,200 = 4,500.

Property price= 73,000

Therefore, 73000 + 4,500= 77,500