Compute the capital gains tax liabilities

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Reference no: EM132082421

Question: UK (Capital gain tax question )

Froster has chargeble gains of £15,000 for the tax year 2016-17,and capital loss of £500.

His wife Fiorren sold a piece of land for £10,000 in December 2016., which was part of a larger plot purchased in 1995 for £3,000 and not used for private residence. The remaining part of the land had a value of £30,000 in December 2016.

Froster's taxable income is £31,800 for the tax year 2016-17.

Fiorrin's taxable income is £12,000 for tax year 2016-17.

Required: (1) Compute the capital gains tax liabilities for both Froster and Fiorrin for 2016-17.

(11) Explain the treatment of capital gains for spouses or civil partners and what happens to any unused annual exemption for capital gains tax purposes. Show all the workings.

Reference no: EM132082421

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