Tax

Discussion in 'SA5' started by BhatiaI, Apr 7, 2016.

  1. BhatiaI

    BhatiaI Member

    Hi Colin,

    Just a very quick thing on chapter 4, where we talk about Income tax allowance to be 10,600 and then say that allowance for people aged 64-75 is 10,500, so I am assuming that 10,500 is on top of the 10,600 basic income tax allowance. Right?

    Also, how is a CGT paid on compensation on loss or damage to an asset?

    Thanks and kind Reagrds
    ishita
     
    Last edited by a moderator: Apr 7, 2016
    BhatiaI, Apr 7, 2016
    #1
  2. Colin McKee

    Colin McKee ActEd Tutor Staff Member

    I think this may be a slight error in the course notes. The age related allowance used to be a fraction higher than the basic (it is not added on top). The basic was increased and is now the same as the age related (ie there is no longer an age related advantage). But I think the age related amount has stayed the same in the core reading. Older people no longer get an advantage I believe, as from this April.
     
    Colin McKee, Apr 7, 2016
    #2
  3. BhatiaI

    BhatiaI Member

    Thank you Colin and how about the CGT calculation paid on compensation on loss or damage to an asset?

    Kind Regards
    Ishita
     
    BhatiaI, Apr 8, 2016
    #3
  4. Colin McKee

    Colin McKee ActEd Tutor Staff Member

    What is your question about this aspect of CGT?
     
    Colin McKee, Apr 8, 2016
    #4
  5. BhatiaI

    BhatiaI Member

    In the course notes, where we talk about CGT, it says that CGT is paid on disposal of asset or if a loss is compensated for? How is CGT calculated if there is a loss compensation, for eg. if there was a loss of say 500GBP and I was compensated for the same, how is the CGT calculated?

    Do I make sense?

    Ishita
     
    BhatiaI, Apr 8, 2016
    #5
  6. BhatiaI

    BhatiaI Member

    Also, another thing on taxation: When we talk about IHT and tax on life time transfers, we say that there exists 325k allowance , is this allowance only applicable on Inheritance and an allowance of 3000 is applicable on Life time gift transfer, right?

    So for eg. if there was a life time transfer of 5000 so we pay 20% tax on 2000
    and if the value of deceased's property on death is 400k so we pay 40% tax on 75k. Right?
     
    BhatiaI, Apr 8, 2016
    #6

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