Question:Acorn Ltd prepares accounts to 31 March.
In the year to 31 March 2013, the company made the following disposals:
Vintage car, used occasionally in promotional events
Mercedes, used by the managing director, with an agreed private use of 20%
Which of the above are chargeable assets?
A. Both.
B. Vintage car only.
C. Neither.
D. Mercedes only.
The correct answer is:C, all cars are exempt from capital gains tax.
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