CGT-individuals-reliefs-Chapter23

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May 28, 2011 at 5:32 am #48695
olgaz
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Dear Sir or Madam, I have question regarding CGT Individuals-Reliefs, Chapter 23, example 2 of Course notes, page 128.
When we calculate cap.gain not qualifying for enterpreneur’s relief, we have taxable gain 64900 (100000-25000-10100) .Anne had taxable income 18000, so unused basic rate band id 37400-18000=19400. Why we charge full amount of 64900 at rate 28%, but not 19400@18% and 45500 @28%? Thank you!
May 28, 2011 at 10:11 am #82469
Tax Tutor
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This is because the gain qualifying for ER , although taxed at 10% , uses up the remaining basic rate band so there is no basic rate band remaining for the gains not qualifying for ER
Hope this helps
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