Personal Tax exam question

lifeisstrange

Hi everyone,
I sat personal tax today and I would like to have your opinion about one capital gain tax question:
Gain for 2011/2012: £17000
Loss for 2011/2012: £3000
Loss brought forward 2010/2011: £1500
What is the chargeable gain for 2011/2012?
Do we have to include the exemption or is it the chargeable gain before exemption?
Thank in advantage for your replies.

Jo Clark

I think it is £1,900 but has been a while since I studied the tax papers.

The way the question is worded in your post I would deduct the AE before saying what the chargeable gain is.

Be great to hear what you and others think the answer is.

reader

lifeisstrange wrote: »

Hi everyone,
I sat personal tax today and I would like to have your opinion about one capital gain tax question:
Gain for 2011/2012: £17000
Loss for 2011/2012: £3000
Loss brought forward 2010/2011: £1500
What is the chargeable gain for 2011/2012?
Do we have to include the exemption or is it the chargeable gain before exemption?
Thank in advantage for your replies.

Chargeable gain = 17,000 - 3,000 - 1,500 = £12,500

Taxable gain = 12,500 - 10,600 = £1,900

Therefore the answer to your question is £12,500

reader

Jo Clark wrote: »

I think it is £1,900 but has been a while since I studied the tax papers.

The way the question is worded in your post I would deduct the AE before saying what the chargeable gain is.

Be great to hear what you and others think the answer is.

I think you have calculated taxable gain here (the question asked for chargeable gain).

Jo Clark

Thanks Reader

That is why you're studying ATT and I'm not