7 Taxation - Core Reading Question

Discussion in 'SA2' started by AKS01, Jan 12, 2023.

  1. AKS01

    AKS01 Very Active Member

    Hi,

    In Chapter 7, there is a question on page 9 in regards to determining the total value allocation to investment return that appears in the final tax assessment if the fund is BLAGAB and non-BLAGAB.
    Why do we not include the unrealised gain in the value for BLAGAB?

    Thanks
     
    AKS01, Jan 12, 2023
    #1
  2. Em Francis

    Em Francis ActEd Tutor Staff Member

    Hi
    Unrealised gains on equities are not within the component of BLAGAB.
    As stated on pages 8 and 9 of the Course notes, I includes only realisable chargeable gains on equities. Unrealisable gains are not included for equities but are for gilts, bonds and derivatives as it values using the mark-to-market approach.

    Thanks
     
    Em Francis, Jan 13, 2023
    #2

Share This Page