Gains: disposal of found objects: not treasure: example
A has owned land since 1974. On 1 June 2009 he entered into an agreement with B, similar to the one at CG77603, under which B agreed to search his land for objects in exchange for 50% of anything found. (This is not, of course, the only form of agreement that A and B might enter into. Other contracts may have different tax consequences.) In August 2009 B found a Saxon cross a foot below the surface.
In December 2009 the Coroners Court determined that the cross was not treasure and so it was sold at auction by A and B in July 2010 for £200,000. A and B shared the proceeds equally.
The value of the cross at 31 March 1982 is agreed at £20,000. The value of a half share at 1 June 2009 is agreed at £90,000.
The gains accruing to A are as follows: -
- Disposal of a half share at 1 June 2009
|90,000 + 90,000|
- Disposal of a half share July 2010
The gain accruing to B is
|Disposal Proceeds July 2010||100,000|
|LESS||Cost (June 2009)||90,000|