BTC -taper relief and IBA - Can anyone reply?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
1 - was there any tapering on the paper? I didnt do any.<BR><BR>2 - did we have to minus the annual exemption of £8200 on anything. Dont think i did<BR><BR>3 - how did you calculate the IBA. i did (tax wdv + a the charge )/ 16 years. Think it was 51200 + 51200 / 16 = 6400 then i did 7/12.<BR><BR><BR>What did you guys put?<BR><BR>Thanlks

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    BTC -taper relief and IBA

    1. No taper relief available to companies so you were right.<BR><BR>2. Do nothing with annual exemption again that is for sole trader or partnership.<BR><BR>3. But with this, the calculation is like this<BR><BR>80000-28800=51200/16=3200<BR><BR>But i also made a mistake, I did 120000-28800/16=5700<BR><BR>We both in the same boat i think.<BR><BR>Arjun<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    BTC -taper relief and IBA

    So, just to confirm was the allowance for IBA 3200 for y/e Oct 04?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    BTC -taper relief and IBA

    No, I don't agree with that last post<BR>I reckon it is [residue after sale]/[remaining life]<BR>Residue after sale is the £80,000 because first owner's IBAs will have been clawed back<BR>16 years left gives purchaser IBAs of £5,000 per annum
  • System
    System Posts: 100,534 🤖 Admin 🤖
    BTC -taper relief and IBA

    yes i assumed original owner had clawed back the allowances. so whatever he claimed on the 80 he lost so to speak. the new owner paid 120 so i did iba on that figure over 16. the diff of 120-80 would have been a gain for original owner??
  • System
    System Posts: 100,534 🤖 Admin 🤖
    BTC -taper relief and IBA

    agree with residue after sale/ No years remaining but dont know if the residue after sale is 80000 again. <BR><BR>any way to what extent will they penalise if we made that mistake. because these figures are to be carried forward to the next task as well. any thoughts apreciated.<BR><BR>Thanks<BR><BR>Arjun
  • System
    System Posts: 100,534 🤖 Admin 🤖
    BTC -taper relief and IBA

    i got it wrong, i did panic and did loads of scribbles notes to try to help me but it didnt work, i took the 120 but it is the 80 figure.<BR>just read the book, it is the residue after sale, and this equals the lower of;<BR>selling price of building <BR>or<BR>original eliglble cost.<BR><BR>whoops, never mind, altho carried forward this figure i know they only mark you against it once.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    BTC -taper relief and IBA

    I also did that tigercat, put 120000. anyway lets wait for the result.<BR><BR>Arjun
  • System
    System Posts: 100,534 🤖 Admin 🤖
    BTC -taper relief and IBA - Can anyone reply?

    I agree with taxmaniac. The purchaser will have had figures of Residue before sale of £51200, plus a balancing charge of £28800 (9yrs @ £3200), Total £80000. This figure would then be divided between the last 16 years of the allowance, I think. If I'm right, it's about the only marks I did get. Had no idea about the dividend tax. I think I'll be busy come December.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    BTC -taper relief and IBA - Can anyone reply?

    Hi<BR><BR>Taxmaniac is right. The IBA should simply be 80000/16 = £5000 per annum.

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