ACCA TX ^UK Syllabus C. Chargable Gains For Individuals - The treatment of capital gains - Past Papers ^{1 / 5}

June 2016 ^Sample

Question 5ii

Patience was born on 31 December 1954. She retired on 31 December 2014, and on that date ceased employment and self-employment. The following information is available in respect of the tax year 2014–15:

Property
Patience owned two properties which were let out unfurnished until both properties were sold on 31 December 2014.

The following information is available in respect of the two properties:

	Property one	Property two
	£	£
Rent received during the tax year 2014–15	3,600	7,200
Sale proceeds on 31 December 2014	122,000	98,000
Allowable revenue expenditure during the tax year 2014–15	(4,700)	(2,600)
Purchase cost	(81,400)	(103,700)

Patience has never occupied either of the two properties as her main residence.

Patience is already a higher rate taxpayer.

Required:
Calculate Patience’s capital gains tax liabilities for the tax year 2014–15.

Notes:
The following mark allocation is provided as guidance for this question:

Capital gains tax 2 marks

Reveal answer

December 2015 ^Sample

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Question 1a

You should assume that today’s date is 1 March 2015.

(a) On 27 August 2014, Ruby disposed of an investment property, and this resulted in a chargeable gain of £45,800.

For the tax year 2014–15, Ruby has taxable income of £17,600.

Required:
Calculate Ruby’s capital gains tax liability for the tax year 2014–15 if this is her only disposal in that tax year. (2 marks)

Note:
Basic rate band in 2015: £31,865
Annual Exempt amount was: £11,000

Reveal answer