MILK QUOTA- FIXED ASSET? - TAX TREATMENT
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.
- Xerocon 2016 570 11
- CT600 Software - anyone else having issues? 346 8
- charity selling (donated) recycled materials & for scrap- VAT? 90 1
- FACTA form help with CRS definitions for SSAS 149 1
- Disengagement Help! 482 14
- Anybody have that old ACCA Student Training Record (STR)? 224 2
- Is Xero payroll as rubbish as I suspect it is? 1,545 33
- Earings from Gardening after retirement 42 1
- Software that posts COGS? 608 14
- Digita Accounts Production Advanced - general perception 265 6
- Taxi Drivers Cost of Sale 533 20
- SDLT 205 6
- Maternity and claining expenses 150 4
- sale/transfer of shares in a private limited company to a related holding company 122 4
- Employment allowance changes 333 7
- Annual to At Least Quarterly 762 34
- Here we go.... 1,019 26
- An IT question 206 5
- Is cloud accounting actually pretty pants? 2,243 39
- Digital tax accounts - what do we expect? 794 13