AAT Practice Assessment 1 - Task 11
JSmith
Registered Posts: 18
in Personal Tax
Hi,
This is quite a simple question but just cant get my head around it!
Wendy made the following capital gains and losses during 2019/20 and 2020/21
A) Calculate Wendy's annual exempt amount not used for 2020/21 and the loss to carry forward to 2021/22. If your answer is zero enter 0. Enter your answer on whole pounds only.
The answer for annual exempt amount not used in 2020/21 is £1,990
Please can someone explain how this is calculated and the reasons why?
Many Thanks!
This is quite a simple question but just cant get my head around it!
Wendy made the following capital gains and losses during 2019/20 and 2020/21
A) Calculate Wendy's annual exempt amount not used for 2020/21 and the loss to carry forward to 2021/22. If your answer is zero enter 0. Enter your answer on whole pounds only.
The answer for annual exempt amount not used in 2020/21 is £1,990
Please can someone explain how this is calculated and the reasons why?
Many Thanks!
0
Answers
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Gain - losses in 2020/21 = 10310. Total allowable for the year = 12300. Difference = 1990 remaining balance (it's "for that year" rather than based on the cumulative trading loss). The loss to carry forward should be -2740
I would suggest it is the wording in the question that threw you?0 -
@dcmcguren thank you!0
