Ask the Tutor ACCA TX-UK
Hi Dear Tutor, I am writing down the formula and want you correct me if I have a mistake in the understanding of the formula
Capita gain for the year
Less capital loss for the year
Net capital gain
Less Aea
Net chargeable gain or chargeable gain?
Less
Capital loss b/f
Taxable gain
After deducting aea, will it be net chargeable gain or chargeable gain?
28d ago#1Net chargeable gains = current year gains less current year losses.
Taxable gain = net chargeable gain less AEA and less any brought forward capital losses.
So normally, taxable gains are arrived at by deducting the AEA from net chargeable gains UNLESS there are capital losses brought forward to deal with, in which case they are deducted after the AEA to arrive at the final taxable gains figure.
