(BSTX) AQ2016 Help

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LouboutinLou1
LouboutinLou1 Registered Posts: 27 Regular contributor ⭐
in Business Tax
Hey guys,

I seem to be doing really well with BSTAX but I'm a little stumped at the following;
AAT website sample assessment 2
Task 10 (a)
Task 10 (b)

Any help would be much appreciated :)

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  • Zubair123
    Zubair123 Registered Posts: 19
    edited July 2018
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    Hi,

    Not sure if you have worked this out yet but I think A) has something to do with entrepreneurs relief. First of all you minus the annual exempt amount of £11,100 off the capital gain in 16/17 of £2,500,000 which is £2,488,900.
    The gain of £12,000,000 in the 08/09 tax year exceeds the £10,000,000 entrepreneurs relief limit therefore you work out 10% of £2,488,900 (£248,890).

    The details of how to work out B will be in the reference material under "Chargeable gains - reliefs available to individuals" Firstly, you would disregard the purchase of the retail unit as it does not fit the qualifying time period therefore you minus the gain of £75,000 off the sale proceeds of £350,000 = £275,000. Take this and minus it from £325,000 (purchase of factory) = £50,000.

    Hopefully, I have worked that out right :)

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