Please Help - PTX Capital Gains FA2011/12

anniebabe Registered Posts: 595 Epic contributor 🐘
Hi Guys

Please can someone help me.

I am working through Chapter 6 Questions in the Osborne Work Book - and I am stuck on 6.4
Not sure how they are working it out B to D

Many thanks.

Josie has a capital loss brought forward of £4000. She is a higher rate income tax payer.
She sold an asset during the tax year of £19000.
She had been given the asset by her husband when it was worth £8000.
Her Husband originally paid £6500 for the asset.

(a) The gain on asset is - i worked that out at £12500 (proceeds £19500 less cost £6500)

stuck on the following. if someone could help. my head has gone blank. I have the answers - but it isnt helping at the moment.

(b) The amount of loss that will be relieved is ?

(c) The capital gains tax payabe is ?

(d) The loss to be carried forward to the next tax year is ?


  • guinea pig
    guinea pig Registered Posts: 402 Dedicated contributor 🦉
    Hi Anniebabe,
    We did this in class on Thursday, and I was initially confused by this one. However,
    The gain on the asset is £12,500
    b) the loss to be relieved is £12,500 less the exempt amount £10,600 = £1,900
    c) CGT payable is nil, as £1900 is less than the loss brought forward of £4,000
    d) Loss to carry forward is £4,000 - £1900 = £2100

    Hope that helps, are you taking the exam soon? we are hoping to take it at the end of this month, so lots to learn!
    Good luck
  • anniebabe
    anniebabe Registered Posts: 595 Epic contributor 🐘
    Thats great thank you for replying GP.
    I will try and work through that again now.
    I am sitting this exam on the 28th - so hopefully will have plenty of time to revise.
    I feel confident about section 1 - its section 2 that I am giving my time to now.
    There are so many bits of rules to remember - so its just getting in as much practise as possible now.
    How are you finding this unit?
    Are you doing Business Tax after as well?
  • anniebabe
    anniebabe Registered Posts: 595 Epic contributor 🐘

    Just reworked that question - Yes, I think that makes a bit more sense to me now.
    I was obviously reading far too much into the question (as usual :/)

    Thanks for taking time to help, very much appreciated.
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