Bob bought a boardroom table for £2,000 in January 1995.
In May 2012, an auctioneer sold it for £7,000 and charged £100 commission.
The chargeable gain is:
The correct answer is: £1,667.
The gain is restricted to 5/3 (gross proceeds – £6,000).
A deduction is available for the costs of disposal.
Proceeds (£7,000 - £100)
Less: Cost
5/3 (£7,000 - £6,000)
Therefore gain
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