# Osborne Books (Workbook - AQ16) Practice Assessment 1 Task 11 - CGT

CyprusAATQB Posts: 7
edited September 28
I am really struggling to understand the answer to the following question -

Taxpayer : Alison
Sold To : Friend
Proceeds : £33,000
Market Value : £25,000
Cost: £13,500
Other Taxable Income : £33,000
What is the CGT = ?

The answer is £990 but I have no idea how that figure has come about. Any assistance would be much appreciated.
AAT
Level 2 Certificate in Accounting - May 2021
Level 3 Advanced Diploma in Accounting - Aug 2021
Level 4 Professional Diploma in Accounting - in progress
AATQB - Aug 2021
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• MAAT Posts: 471
So you have a couple of different steps:
1st you need the amount that can be taxed:

Proceeds £33,000
Cost £13,500

Gain 19,500

Less AEA - 12,300

Chargable amount 7,200

Next you need to work out under which rate the tax will be charged. Lower =10% Higher = 20%

Lower band remaining = 37500 - 33000 = 4500 @ 10% = 450
Higher rate = (7200-4500) = 2700 @ 20 % = 540

Total tax = £990
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• CyprusAATQB Posts: 7