Dear Tutor, in question b, Innocent and Nigel,
Innicent makes disposal................................Nigel makes disposal
proceeds 65,000..................................................65,000
less: cost (2,000)..................................................(30,800)
gain 63,000..........................................................34,200
CGT on £ 63,000 @ 10%.............CGT on £34,200 @28%
6,300........................................................9576
why they didn't exclude AE 11,000.
many thanks
Ask the Tutor ACCA TX-UK
june 2013 GINGER AND INNOCENT
READ the question! The question states that they have both already made disposals fully using the AEA - it is therefore irrelevant to the decision being made!
Why is innocent taxed at 10 % and nigel taxed at 20 % when they both have taxable income of 80000.
Check out the qualifying conditions for entrepreneurs' relief!
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