BPP PRACTICE ASSESSMENT 3 Business Tax Task 11

storres
storres Registered Posts: 8
I have been struggling with this task I am not sure how to get the right answer, can someone give me a hand please ?

Comments

  • Pian32
    Pian32 MAAT Posts: 461
    So the first thing to notice is that the AEA has already been deducted leaving them with a gain of £21,000.

    Captial gains is charged at 2 rates, for lower 10% and for higher 20%. (Residential 18/28%)

    Peter:
    Other income of £11,300 this uses the basic band first.

    BRB remaining: 37,500 - 11,300 = 26,200

    All £21,000 falls into the BRB

    Tax:
    Lower = 21000 @ 10% = 2,100
    Higher = 0

    Richard:
    Other income of £26,100.

    BRB remaining: 37,500 - 26,100 = 11,400

    Tax:
    Lower = 11,400 @10% = 1,140
    Higher = (21,000 - 11,400) @ 20% = 1,920

    Gemma:
    Other income of £66,800

    BRB remaining = 0

    Tax:
    Lower = 0
    Higher = 21,000 @ 20% = 4,200
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  • storres
    storres Registered Posts: 8
    Thanks for your help @Pian32
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