Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Paolo started his own, and only, business as a sole trader in 2000 and has decided to sell it to Leo in the tax

image text in transcribed

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 Goodwill Warehouse 255,000 130,000 (75,000) 170,000 Investment property (currently let) 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. Edit View Insert Format Tools Table T n (8 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Carl S Warren

6th edition

978-113318912, 1133189121, 978-1133189121

More Books

Students also viewed these Accounting questions