CGT AAT PTAX FA2016 SAMPLE ASSESSMENT 1

dalmatian

Could somebody help me out on this one. How do you work out the answers? Had a go but am going wrong big time.

dalmatian

1.11 the very last question...

Bertie

If you post the actual question you'll likely get a better response.

dalmatian

Taxpayer sold to proceeds market value cost other tax income
david wife 32000 40000 9300 78500
marie father 16450 20000 8300 50200
lou neighbour 42000 44000 20650 28000

Q1 the amount of cgt payable by David is £0
Q2 the amount of cgt payable by Marie is £xxx
Q3 the amount of cgt payable by Lou is £xxx

Sorry for the poor layout - but without the option of copy/pasting something like this this is the best i can do.

Any help would be grately appreciated.
Thanks,

dalmatian

sorry the titles have been bunched together
they should read:
taxpayer, sold to, proceeds, market value, cost, other taxable income.

Bertie

Hi, I'm sorry I've only just seen your post.

1) David has sold to his wife on a no loss no gain basis. Therefore answer is £0

2) Marie has sold to her Father, they are connected, so use market value. Thus -
[20000 - (cost) 8300] - (AEA) 11100 = 600. Marie is a HR taxpayer, therefore the gain is taxed at 20%, giving £120.

3) Now, Lou and her neighbour are unconnected, therefore use actual proceeds.
[42000 - (cost) 20650] - (AEA) 11100 = 10250. Now, Lou has £4000 left in her basic band so £4000 x 10% and [£10250 - £4000] x 20% gives a total of £1650.

I hope that is of some use to you.

dalmatian

Many thanks,

Bertie

You're welcome