Person tax question
Lee
Registered Posts: 29 Regular contributor ⭐
Hi guys can someone please help me with how question 7.5 (b) has been worked out to get answer £5200 - in Osborne workbook page 28.
My working ;
10/(10+15)*12= £4800.
Thanks for yr help
Lee
My working ;
10/(10+15)*12= £4800.
Thanks for yr help
Lee
0
Comments
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A quarter acre piece of land was sold for £10,000. It had been bought as part of the two-acre plot for £12000. The remaining land was valued at £15000 at the time of the sale.
The gain on the land is:
Cost of land = 12,000
Proportion of land sold = 10, 000 / (10, 000 + 15, 000) = 0.4
Therefore proportion of cost deductible against gain = 12, 000 x 0.4 = 4, 800
Capital gain = 10, 000 - 4,800 = 5, 200
I've taken a look at your answer and you have only calculated cost. The question asked for gain, i.e. sale proceeds - cost.0 -
Oops, thank you so much, you are right, just these little mistakes will cost me good marks.
lee0
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