9 In 2020-21, Ahmed has capital gains of £130,000 and allowable losses of £24,000. 1 also has capital losses brought forward of £3,700. Ahmed's taxable income for 2020-21 (after deduction of the personal allowance) £22,500. He makes Gift Aid donations of £8,000 during the year. Compute his CO liability for the year assuming that his gains of £130,000 comprise either: (a) a gain of £120,000 which qualifies for business asset disposal relief (BADR) and non-BADR gain of £10,000 on the disposal of chattels, or (b) a BADR gain of £10,000 and a non-BADR gain of £120,000 arising on the dispo of residential property, or (c) a BADR gain of £7,500, a non-BADR gain of £70,000 on the disposal of resident property and a non-BADR gain of £52,500 on the disposal of shares.
9 In 2020-21, Ahmed has capital gains of £130,000 and allowable losses of £24,000. 1 also has capital losses brought forward of £3,700. Ahmed's taxable income for 2020-21 (after deduction of the personal allowance) £22,500. He makes Gift Aid donations of £8,000 during the year. Compute his CO liability for the year assuming that his gains of £130,000 comprise either: (a) a gain of £120,000 which qualifies for business asset disposal relief (BADR) and non-BADR gain of £10,000 on the disposal of chattels, or (b) a BADR gain of £10,000 and a non-BADR gain of £120,000 arising on the dispo of residential property, or (c) a BADR gain of £7,500, a non-BADR gain of £70,000 on the disposal of resident property and a non-BADR gain of £52,500 on the disposal of shares.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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