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.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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In 2020-21, Ahmed has capital gains of £130,000 and allowable losses of £24,000. Ha
also has capital losses brought forward of £3,700.
17.9
Ahmed's taxable income for 2020-21 (after deduction of the personal allowance) i
£22,500. He makes Gift Aid donations of £8,000 during the year. Compute his CGT
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 disposa
of residential property, or
(c)
a BADR gain of £7,500, a non-BADR gain of £70,000 on the disposal of residentian
property and a non-BADR gain of £52,500 on the disposal of shares.
Transcribed Image Text:In 2020-21, Ahmed has capital gains of £130,000 and allowable losses of £24,000. Ha also has capital losses brought forward of £3,700. 17.9 Ahmed's taxable income for 2020-21 (after deduction of the personal allowance) i £22,500. He makes Gift Aid donations of £8,000 during the year. Compute his CGT 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 disposa of residential property, or (c) a BADR gain of £7,500, a non-BADR gain of £70,000 on the disposal of residentian property and a non-BADR gain of £52,500 on the disposal of shares.
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