Hello Sir,
My question is as follows:
For 2015-16, an investor already has chargeable gains of £9000 and capital losses of £6000. What would be the most beneficial strategy for the investor?
A. Make further capital losses of £8000 before 05.04.16
B. Make further chargeable gains of £3000 before 05.04.16
C. Make further chargeable gains of £2000 before 05.04.16
D. Make further chargeable losses of £5000 before 05.04.16
Can you please explain Sir?
Ask the Tutor ACCA TX-UK
CGT MCQ
What answer was provided and what do you think is the answer - though I accept here it's not a very good question as either of 2 answers might be reasoned! Where was the question from?
I do not know the answer that is provided Sir. I found the question in a lecture note from local tutor, no answer given.
My answer is B.
Chargeable gains 9000
-Capital loss in tax year (6000)
Net Capital Gains 3000
But Sir, what i am not understanding is the annual exemption. If the annual exempt amount is not used, then it is wasted.
Can you please explain also explain the use of Annual Exemtion here?
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