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Capital Gain Tax question of Chapter 14 (pg. no.90 example 2 of opentution note)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Capital Gain Tax question of Chapter 14 (pg. no.90 example 2 of opentution note)

  • This topic has 2 replies, 2 voices, and was last updated 7 years ago by Avatarkishwor.
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  • February 17, 2019 at 5:19 am #505401
    Avatarkishwor
    Participant
    • Topics: 1
    • Replies: 1
    • ☆

    In short, question is, Annie who is disposing shares firstly with chargeable gain of 4,500,000 (qualifying for entrepreneur relief) and also a antique painting with chargeable gain of 100,000 in TY2017/18. She has b/f capital loss of 25,000 and has other taxable income is 18000 for same TY. We need to calculate CGT for 2017/18.

    In this question, I deducted b/f capital loss of previous TY (25000) and AEA (11300) respectively from capital gain on antique painting. And get the taxable gain of 4,500,000 and 63,700 for shares and antique table respectively. Similarly, I calculate the unused BRB of 15,500 (33500- 18500).

    Now kindly tell me why I cannot use the unused BRB for my taxable gain in antique table?

    Answer in the opentution note is, (4500000*0.10=450000)+(63700*0.20)=462,740
    But I get the answer as,
    15500*0.10=1550
    (63700-15500)*0.20=9640
    4500000*0.10=450000
    Total=461,190

    Thank you.
    Hope you got my point.

    February 17, 2019 at 2:04 pm #505513
    AvatarTax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    Didn’t you read note 2 to the answer which explains that point? The issue is also noted in section 1.4 of the chapter just before the example in question

    February 24, 2019 at 9:21 am #506374
    Avatarkishwor
    Participant
    • Topics: 1
    • Replies: 1
    • ☆

    Thank you Sir. I got.

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