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Is there a mistake in the answer for the Past Exam paper Sept/Dec 2016 Q1

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Is there a mistake in the answer for the Past Exam paper Sept/Dec 2016 Q1

The answer provided for Sept/ Dec 2016 Q1 (a) (i):
Tutorial notes: 2. the additional assets can be purchased by any member of the capital gains group, the group consists of all of the companies apart from Joli Ltd (not a 75% subsidiary of Hahn Ltd) and RUTH LTD (not a 75% subsidiary of Lise Ltd). Therefore, the £6,000 spent on purchases of assets by Ruth Ltd does not represent a qualifying reinvestment for the purposes of rollover relief.

My question is that surely Ruth Ltd is a capital gains group member as Hohn Ltd group has more than 50% effective interest in subsidiary. So the purchase by Ruth Ltd should be a qualifying reinvestment for rollover purposes.

Please any advise on this? Thanks

November 8th 2017 AN ACCA USER 140 Points

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