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April 26, 2017 at 3:56 am
I recently looked at the questions posted for the tax year 2016/17. Not to sure if my answer is relevant at this point but this is what my analysis is:
The proceeds for the investment property being disposed of on October 1, 2017 falls within the 2017/2018 Tax year and is not applicable for CGT Computation in 2016/17.
The disposal of the painting on 1-Feb-2017 falls within the current 2016/2017 and hence CGT computation is applicable.
Disposal proceeds 10,000
Less: incidental cost of Disposal (2% fees) – 200
Net Proceeds 9,800
Less: Cost -30,000
Capital Loss in Current year -20,200
Hence, the Capital Loss B/F cannot be utilized due to a loss in the current year and the Annual Exempt Amount is wasted.
Someone else can comment.
February 2, 2017 at 11:32 am
Kindly help me out with this question
Im getting confused about the calculation of CGT Liability
Mike sold an investment property on 1st Oct 2017 for GBP 700,000. He had acquired the building for GBP 100,000 in Mar 2005 and has extended it at a cost of GBP 20,000 in July 2007.
Mike also disposed of a painting on 1st Feb 2017 for GBP 10,000 incurring auctioneer’s fee of 2%. He acquired the painting for GBP 30,000 in Aug 2006. He has capital losses brought forward of GBP 19,000.
Mike taxable income of GBP 20,000 for the tax year 2016/17.
Calculate CGT payable for 2016/17.
Taxable gain I calculated: GBP 529,700
Total Capital Gains Tax liability = GBP 104,740
Tax rates used : 10% & 20%
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