Hello.
-Jackson acquired a holiday villa for £115,000 on 1 May 2008. He gave it to his wife Sophia on 30 September 2013 when it was £100,000. Sophia sold the villa for £165,000 on 1 July 2018.
Sophia had no capital disposals in the year 2018/19 and has capital losses brought forward of £4,600. Her taxable income for the tax year 2018/19 is £60,000.
What is the Sophia's gains tax payable in the tax year 2018/19?
1. The answer is £9,436.
2. The working is as follows:(165000-115000-4600-11700) x 28%
3. Could you explain why 28% was used?
- Do we consider the holiday villa as a residential property?
Thanks
Ask the Tutor ACCA TX-UK
Chargeble Gains
Yes of course it is residential property
from where does 11.700 arise?
This question is 6 years old and you should be dealing with questions for this FA or you will find much confusion - 11,700 was the AEA at the time.
DO NOT do old question as the rules have changed
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