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Hello
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% [tax year 2016|17]
*first GBP 12,000 of the remaining basic rate limit taxed at 10% and remaining GBP 517,700 taxed at 20%
good??
Most of the calculation seems sound but if investment property is residential property not subject to principal private residence relief then the rate charged should be eighteen percent on basic band and twenty eight percent on higher band.Think the rest of calculation was how I would have calculated the tax.
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