Paolo started his own, and only, business as a sole trader in 2000 and has decided to sell it to Leo in the tax year 2020/21. He realised following gains/losses) Factory £255,000 Goodwill £130,000 Warehouse (£75,000) Investment property (currently let) £170,000 All the assets have been held by Paolo for many years. He has no other gains or losses in the tax year 2020/21 but has capital losses brought forward of £13,000. His only other income for the year is trading profit of £35,000. Required: Calculate the amount of CGT payable by Paolo on the sale of his business claiming all relevant reliefs.

Paolo started his own, and only, business as a sole trader in 2000 and has decided to sell it to Leo in the tax year 2020/21. He realised following gains/losses) Factory £255,000 Goodwill £130,000 Warehouse (£75,000) Investment property (currently let) £170,000 All the assets have been held by Paolo for many years. He has no other gains or losses in the tax year 2020/21 but has capital losses brought forward of £13,000. His only other income for the year is trading profit of £35,000. Required: Calculate the amount of CGT payable by Paolo on the sale of his business claiming all relevant reliefs.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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