Practice Assessment 2 task 11C FA2021 Business Tax
ukalia
Registered Posts: 2 New contributor 🐸
Is anyone able to explain the answers to the below questions.
Wilf is selling shares in his company. He is the sole shareholder & director and has been for 15 years. He subscribed for the 1,000 shares at £1 each & a third-part purchaser has offered to buy then for £1.4m on 30/06/21. Wilf has had no other disposal.
(i) Calculate the taxable gain for Wilf on the sale of the shares.
Answer £1,386,700
(ii) Calculate the tax that will be charged on the gain assuming that Wilf claims all beneficial reliefs.
Answer £177,340
(iii) Calculate the after-tax proceeds that Wilf will have from the sale.
Answer £1,222,660
Wilf is selling shares in his company. He is the sole shareholder & director and has been for 15 years. He subscribed for the 1,000 shares at £1 each & a third-part purchaser has offered to buy then for £1.4m on 30/06/21. Wilf has had no other disposal.
(i) Calculate the taxable gain for Wilf on the sale of the shares.
Answer £1,386,700
(ii) Calculate the tax that will be charged on the gain assuming that Wilf claims all beneficial reliefs.
Answer £177,340
(iii) Calculate the after-tax proceeds that Wilf will have from the sale.
Answer £1,222,660
0
Comments
-
Hi,
(i) Proceeds 1,400,000
Less: Cost (1,000)
Gain 1,399,000
Less: Allowance (12,300)
Taxable Gain 1,386,700
(ii) 1,000,000 @ 10 % = 100,000
386,700 @ 20 % = 77,340
Tax Payable 177,340
(iii) 1,400,000 - 177,340 = 1,222,660
0 -
Thank you!0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 321 NEW! Qualifications 2022
- 164 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership