Question：Graphoprint Ltd, a printing company, made a capital gain on the sale of one of its freehold factories which was sold on 30 June 2003. The company elected to hold over this gain against expenditure on a fixed printing press acquired on 1 September 2003.

The printing press ceased to be used for the purposes of the company's trade on 30 July 2012, and was subsequently sold on 1 January 2013.

On which date does the held over gain become chargeable?

A. 30-Jun-13

B. 01-Sep-13

C. 30-Jul-12

D. 01-Jan-13

The correct answer is: 30-Jul-12.

【解析】A heldover gain is deferred until it crystallises on the earliest of:

10 years after the acquisition of the replacement asset (1.9.13)

the disposal of the replacement asset (1.1.13)

the date the replacement asset ceases to be used in the trade (30.7.12).