PTC Taper Relief - Was there any?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Is it just me but the questions all asked for gains before taper relief. Did anyone else find this odd? I am assuming they did not want us to calculate taper relief?

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    PTC Taper Relief - Was there any?

    you ahd to calculater taper relief after loses on another question. there was a loss and two other companies had taper relief of different amounts.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PTC Taper Relief - Was there any?

    oohhhh dear, did it ask you to do that? or were you supposed to know?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PTC Taper Relief - Was there any?

    you were supposed to know. you had to work out the cap gain or something in a question and to do that you had to allocate the loss and work out the taper relief and take off the annual exemption
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PTC Taper Relief - Was there any?

    I think I had a 95% taper relief less loss, a 85% TR and a loss (so no taper relif). calculated all this (gains before taper relief minus loss), deducted taper relief per bit then allowance from total gain then CG of 10%. Dont know if I am right, but thats what I did.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PTC Taper Relief - Was there any?

    Yes the taper relief was in a following question.<BR><BR>1 set of shares (the FA1985 Pool) would have attracted 80% taper relief<BR><BR>1 set of shares I think attracted 3 years or 95% taper relief<BR><BR>1 set of shares was a loss so no taper relief because I think taper relief cannot increase a loss.<BR><BR>I worked out these seperately then added them together to get the overall gain/loss for the year.<BR><BR>I think allocating losses before taking taper relief only applies to losses b/f from previous years - may be I am wrong here though.<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PTC Taper Relief - Was there any?

    <br><br><< <i>I think allocating losses before taking taper relief only applies to losses b/f from previous years - may be I am wrong here though</i> >><br><br><BR><BR><BR>I daresay you are right, however, what would be the point in allocating a loss to the highest chargeble gain *after* Taper Relief, because then it wouldn't make any difference which gain you allocated it to...?<BR><BR>I think it is only losses b/f that can be allocated down to the Annual Exemption level, perhaps that's what you are thinking of.<BR><BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PTC Taper Relief - Was there any?

    As far as I know losses are allocated before taper relief, as poohbear already said thats the point in taking the loss off of the amount which has least taper relief benefit.<BR><BR>Current year losses have to be offset against current year gains. But losses b/f can be used to reduce the gain down to the annual exemption, thefore resulting in nil.<BR><BR>In terms of whether we should have calculated the gain before or after taper relief. I think I remember the question saying "...after taper relief, if applicable". Which is the AAT's way of making you decide whether taper relief is applicable or not.<BR><BR>For the first two lots of shares I had a taper relief of 80% and 95%, then the third lot resulted in a loss so no taper relief there.<BR><BR>Hope its right! Guess we'll all just have to wait and see. Good luck for the results everyone!<BR>

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