Assets Lost or Destroyed

Question 1

Compensation Received

When is The Disposal Date?

Answer 1

The Receipt Date of Compensation.

Question 2

Compensation For Assets Lost or Destroyed

When Can A ‘Rollover’ Claim be Made?

Answer 2

When a Replacement Asset is Bought Within 12 Months.

Must be a Chargeable Asset.

Question 3

Compensation For Assets Lost or Destroyed

When Must a ‘Rollover’ Claim be Made?

Answer 3

Within 4 Years of The End of The Tax Year of Disposal.

Question 4

Compensation For Assets Lost or Destroyed

What is Immediately Chargeable if a ‘Rollover’ Claim is Made?

Answer 4

Any Cash Retained.

(Compensation Received - Cost of Replacement)

Question 5

‘Negligible Value Claims’

What is The Effect of a ‘Negligible Value Claim’?

Answer 5

A Loss is Crystallised.

Question 6

‘Negligible Value Claims’

The Capital Loss Arising Can be Claimed in:

Answer 6

• The Year of Claim; or
• Either 2 Preceding Years.

The Asset Must be Negligible Value The Year Loss Relief is Taken.