i have a client (limited company) that has sold some property (premises) in the year. In order to calculate the capital gain I need to identify the purchase price, however, the property was given to my client in,lieu of a debt. Therefore what value do I use as the purchase price, I'm assuming market value at the date of acquisition? Not the value shown on the balance sheet. Client had premises valued not long after acquiring and value was lower than amount shown as asset on balance sheet.
Am am I right in thinking I need to use indexation too when calculating the gain?
Also so can someone help with regard to potentially claiming entrepreneur relief?
Where does the chargeable gain get shown on the tax return?
I guess the profit on sale from writing the asset out of the books is ignored when calculating the company tax due as usual.