Business tax level 4 aq2013
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Bodz
Registered Posts: 1
in Business Tax
Hi new here.
Wonder if some can advise me.
Looking from a aat assessment performance feedback the below question:
Davis sold an asset to his son during 15/16
Proceed £20,000
M.value £30, 000
Cost £10,700
His got taxable income of £68200
Q: what is the amount of cgt payable by david on disposal.
My answer:
30,000 less cost 10700=19300
Then less annual exempt amount 11100 = 8200
8200 x 20% (since higher rate tax payer)= 1640
Examiner feed back answer is:
8200 x 28% = 2296
This is a asset and not a residential property. So i believe the higher rate to be used is 20% and not 28%
Can someone advice me if the examiner has made a error or is he/she correct, if so how?
Thank you
Bodz
Wonder if some can advise me.
Looking from a aat assessment performance feedback the below question:
Davis sold an asset to his son during 15/16
Proceed £20,000
M.value £30, 000
Cost £10,700
His got taxable income of £68200
Q: what is the amount of cgt payable by david on disposal.
My answer:
30,000 less cost 10700=19300
Then less annual exempt amount 11100 = 8200
8200 x 20% (since higher rate tax payer)= 1640
Examiner feed back answer is:
8200 x 28% = 2296
This is a asset and not a residential property. So i believe the higher rate to be used is 20% and not 28%
Can someone advice me if the examiner has made a error or is he/she correct, if so how?
Thank you
Bodz
0
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