Entrepreneurs Relief

CTB02

Can someone clear some thing up for me on the entrepreneurs relief calculation please........

When doing the calculation you calculate 4/9 on the total gain plus the annual exemption of £10,100 then the CGT is then calculated 18% of the final once these have been deducted?

Its just that i have been doing a past paper that doesn't show the the £10,100 exemption on the answer, where i have included it in my answer.

Hope someoone can help me on this

Thanks

rehana

It depends what the question is asking you to calculate.Is it asking for CGT payable or the assessable amount ?

CTB02

Hi Rehana

Its asking for your to calculate the net capital gain arising from the sale of an asset

thanks again

rehana

when did they buy it and when did they dispose of it ?

CTB02

The question was............
John owned another business, unconnected to the partnership which he sold in November 2009. Details fo the sale are............
Asset Proceeds Cost
Goodwill £45,000 Nil
Warehouse £187,500 £56,325

Calculate the net capital gain arising from te sale of the above assets, you do not need to calculate the tax payable.

rehana

You don't apply the relief because it is only asking for the net capital gain.

CTB02

Thanks rehana. Must remember to read the question!