Capital Gains Tax calculation

philreddy1985

Hello all,

I am currently taking the AATL4 PLTX and I am having some difficulties with CGT calculations, I am hoping someone can point me in the right direction.

Antique Table purchased for 4750, sold to a friend for 6300. Calculate CGT due.

I am getting this far;

Proceeds - 6300
Purchase - 4750
Gain = 1550

The answer is 500 but how am Igetting to this 500? Is there a simple calculation I can follow?

Kind regards,

Phil

douglasstroud

Hi
Because disposal proceeds exceed £6,000 but purchase was les than £6,000 the 5/3 rule will apply meaning
5/3 x (Disposal proceeds of £6,300 - £6,000)

So 5/3 x £300 = £500
HTH