[CG53515] Debts: satisfied by acquisition of property: example
•A manufacturer runs into financial difficulties and is unable to pay its supplier for the materials it has used. The debt outstanding is £80,000 and the supplier accepts a freehold property in satisfaction of the debt in June 1990. The market value of the property at the time is agreed to be £70,000.
•The manufacturer is treated as disposing of the freehold property for £70,000 and any chargeable gain or loss is computed by reference to that figure.
•The supplier subsequently sells the property in September 1992. The sale proceeds are