Capital Gains Tax Question!

dan_91xdan_91x Registered Posts: 7
John has a capital loss brought forward of £2500. He has taxable income for the year of £25000.
He sold an asset during the tax year for £21000 (not residential property). He had been left the asset when his grandfather died.
His grandfather had paid £6000 for the asset, and it was valued at £9500 at the time of the death.

1) The gain of the asset is:
2) The amount of loss that will be relieved is:
3) The capital gains tax payable is:
4) The loss to be carried forward to the next year is:

The answer:
1) 11500
2) 400
3) 0
4) 2100

but I dont understand how the figures where calculated. Would appreciate any help.


  • fournaanjezfournaanjez Registered Posts: 32
    Sales proceeds £21000
    Cost £(9500)
    Gain £11,500 (1)
    b/fwd loss £(400) (2)
    AEA (2016/17) £(11,100)
    Taxable gain £ -
    CGT = £0 (3)

    Loss memo:
    b/fwd capital loss £2500
    Relieved 2016/17 £(400)
    Loss c/fwd £2100 (4)

    Note: Only use £400 of b/fwd capital loss so we do not waste any of the annual exempt amount.
  • dan_91xdan_91x Registered Posts: 7
    omg thank you very much!!
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