ACCA F6 CGT Individuals and Companies

Comments

1. joannebretney says

   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.

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2. Priyanka says

   February 2, 2017 at 11:32 am

   Hello Sir

   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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