AC412 INCLASS TEST 2 – MARKING SCHEME

GUNHILL HOUSE- 2013 mark

Gross capital amount 250 000 1
Less: Cost of house (200 000) 1
Inflation allowance (200 000 x 2.5% x 5yrs) (25 000) 1
Potential capital gain 25 000 1
Less: Roll over relief (80 000/250 000) x 25 000 (8 000) 1
Actual Capital gain 17 000 1
Capital gains tax @ 20% (20% x 17 000) 3 400 1
Less withholding tax (15% x 250 000) (37 500) 1
Tax refund (34 100)

ZIMRE PARK HOUSE

2015 tax year
Gross capital amount 100 000 1
Less: Cost of house 80 000 1
Roll over relief (8 000) 2
New base cost (72 000) 1
Inflation allowance (72 000 x 2.5% x 3yrs) (5 400) 2
Potential capital gain 22 600 1
Less: Suspensive sale allowance ( 50 000/100 000) x 22 600 (11 300) 2
Actual Capital gain 11 300 1
Capital gains tax @ 20% 2 260 1
Less withholding tax (15% x 100 000) (15 000) 1
Tax refund (12 740) 1

Zimre Park house - 2016 Tax year

2015 Suspensive sale allowance b/d 11 300 1
Less 2016 suspensive sale allowance (20 000/100 000) x 22 600 4 520 1
Capital gain 6 780 1
Capital gains tax ( 20% x 6 780) 1 356 1

Zimre Park house - 2017 Tax year

2016 Suspensive sale allowance b/d 4 520 1
Capital gains tax ( 20% x 4 520) 904 1

WESTGATE HOUSE- 2017

Gross capital amount 90 000 2
Less: Cost of house (65 000) 1
Inflation allowance (65 000 x 2.5% x 5yrs) (8 125) 1
Capital gain 16 875 1
Capital gains tax @ 20% (20% x 16 875) 3 375 1
Less withholding tax (15% x 90 000) (13 500) 1
Tax refund (10 125)
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