I have had question posed to me which I think I know the answer to.....

A purchased milk quota is a fixed asset - assumingly amortised over the useage of the literage granted - ie the portion of the cost of the quota is matched to the sales volume in the accounting period - this is presumeably an allowable expense

When it is sold on with a balance of litres left over - is this taxed as income/allowable loss or capital gain issue?

The question I was asked - is it CGT? - I think not as it is a trading asset - so is the profit or loss allowed/taxed in the accounts as a trading transaction.

Thanks in advance for any input.

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This could be a

Time for change |
Time for change's picture

Intangible Fixed Asset

andrew.hyde |