Does anyone have December 03 PTC answer?

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:08AM in AAT student discussion
Please help it's just section 2 that I need. Failed PTC in June because of section 2 which is always on CGT.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Does anyone have December 03 PTC answer?

    Yes I do, what do you need to know?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Does anyone have December 03 PTC answer?

    I need the whole answer for section 2 if poss? If u can't scan it to send to me could you just give the answers and I'll try my best to work to them. Thanks...
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Does anyone have December 03 PTC answer?

    SECTION 2 <BR><BR>Task 2.1<BR><BR>No of Shares Cost Indexed Cost<BR><BR>July 1989 purchase 1,000 15,500 15,500<BR>IA to August 1993 0.223 3,457<BR> 18,957<BR>Purchase 1,500 21,800 21,800<BR> 2,500 37,300 40,757<BR>IA to April 1995 0.054 2,201<BR> 42,958<BR>Right's issue 2 for 10 500 5,000 5,000<BR> 3,000 42,300 47,958<BR>IA to April 1998 0.091 4,364<BR> 52,322<BR>May 1999 disposal (800) (11,280) (13,952)<BR> 2,200 31,020 38,370<BR>March 2003 disposal 1,500 (21,150) (26,161)<BR>Pool to carry forward 700 9,870 12,209<BR>Proceeds 1,500/2,000 46,170<BR>Cost 21,150<BR> 25,020<BR>IA (26,161 21,150) 5,011<BR>Chargeable gain 20,009<BR><BR>June 2000 purchase:<BR><BR>Proceeds 500/2000 x 61,560 15,390<BR>Cost .9,800<BR>Gain 5,590<BR><BR>Task 2.2<BR><BR>Asset is exempt from CGT as it is a chattel sold for less than £6,000.<BR><BR><BR>Task 2.3<BR><BR>Proceeds 101,000<BR>Cost<BR>£50,000 x 101/101+25 40,079<BR> 60,921<BR>IA 0.361 14,469<BR>Chargeable gain 46,452<BR><BR>Task 2.4<BR><BR> Total S104 June 2000 Land<BR>Chargeable (8 5%) (10 0 %) (8 5 %)<BR>Gains 72,051 20,009 5,590 46,452<BR>Less loss b/fwd (20000) (14,410) (5,590) -<BR> 52,051 5,599 - 46,452<BR><BR>Tutorial note allocation of remaining loss of £ 14,410 could also have been made against the land]<BR><BR>Chargeable 44,243 4,759 39,484<BR>Less Annual exemption (7,700)<BR>Taxable gains 36,543<BR><BR>Task 2.5<BR><BR>Income Tax Total Interest Dividends<BR><BR>Dividends (7,650 x 100/90) 8,500 8,500<BR>Bank interest (720 x 100/80) 900 900<BR> 9,400<BR>Less personal allowance 4,615 (900) (3,715)<BR> 4,785 - 4,785 <BR><BR>Dividends £4,785 x 10% 478.50<BR>Total income tax liability 478.50<BR><BR>Capital Gains Tax £<BR>(29,900 4,785) x 20% 5,023.00<BR>11,428 x 40% 4,571.20<BR>Total gains tax liability 9,594.20<BR><BR>Hope this helps, clear as mud. All the best for tomorrow.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Does anyone have December 03 PTC answer?

    Thanks alot :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Does anyone have December 03 PTC answer?

    I know this sounds stupid but i really do not understand how 2.4 works. Can someone explain in idiots terms<BR><BR>thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Does anyone have December 03 PTC answer?

    the £20,00 capital loss that George Green can be apportioned against his gains for this year. when you apportion a loss you try to apportion it against the gains with the least taper relief - in this case the June shares which doesn't have any taper relief and then you could apportion the rest (£14,410 against either the 1985 pool shares or the land as they have the same taper relief.<BR><BR>Hope this is of some use

Categories

Privacy Policy