Personal Tax (PLTX) FA2018 - Practice assessment 2 - Task 1.11

Merav

Hello,

Can someone help me work out Task 1.11 of the Practice CBT 2 question (FA 2018) of Personal Tax (AQ 2016)?

Question:
Thomas has the following capital gains and losses in the last few years. He wishes to relieve his losses at the earliest opportunity.

2016/17
Annual exempt amount: £11,100
Capital gains: £26,500
Capital losses: £15,700
2017/18
Annual exempt amount: £11,300
Capital gains: £31,800
Capital losses: £46,500
2018/19
Annual exempt amount: £11,700
Capital gains: £46,300
Capital losses: 27,500

The amount that Thomas will have to pay capital gains tax on in 2018/19 is £
The amount of losses (if any) Thomas can carry forward to the 2019/20 tax year is £

The answers are:
£0 and £7,600

douglasstroud

Hi

2016/17 £10,800 Gain is covered by the AE

2017/18 £14,700 Loss is carried forwards (AE is lost)

2018/2019 £18,800 Gain is reduced by £7,100 of the carried forward loss down to the AE amount, so no CGT to pay which leaves a loss of £7,600 to carry forward to future years

HTH

Merav

Thanks a lot. Your explanation makes perfect sense.