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    This document outlines the calculation of real property gains tax (RGPT) payable for the disposal of a property. It defines key terms like acquisition price, disposal price, chargeable gain, exemption, and net chargeable gain. It provides an example calculation showing how to determine the acquisition price, disposal price, chargeable gain, exemption, net chargeable gain, and ultimately the RGPT payable. It also describes how allowable losses from previous years can be offset against current gains to reduce the RGPT payable.

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    This document outlines the calculation of real property gains tax (RGPT) payable for the disposal of a property. It defines key terms like acquisition price, disposal price, chargeable gain, exemption, and net chargeable gain. It provides an example calculation showing how to determine the acquisition price, disposal price, chargeable gain, exemption, net chargeable gain, and ultimately the RGPT payable. It also describes how allowable losses from previous years can be offset against current gains to reduce the RGPT payable.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    13 views3 pages

    Week 7

    Uploaded by

    umstudy
    This document outlines the calculation of real property gains tax (RGPT) payable for the disposal of a property. It defines key terms like acquisition price, disposal price, chargeable gain, exemption, and net chargeable gain. It provides an example calculation showing how to determine the acquisition price, disposal price, chargeable gain, exemption, net chargeable gain, and ultimately the RGPT payable. It also describes how allowable losses from previous years can be offset against current gains to reduce the RGPT payable.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 3

    RGPT

    Disposal price XX

    (-) Acquisition price (X)

    Chargeable gain X

    (-) Exemption (X)

    Net chargeable gain X

    (x) RGPT rate

    Tax/RGPT payable

    Acquisition price

    Consideration paid X

    (+) Incidental cost

    (-) Compensation received (XX)

    Insurance coverage

    Deposit forfeited

    Acquisition price X
    Example 1

    Consideration paid 350,000

    (+) Incidental cost

    Stamp duty 3,500

    (-) Compensation received (30,600)

    Insurance coverage (11,200)

    Deposit forfeited (10,000)

    Acquisition price 301,700

    Consideration received 500,000

    (-) Valuation fee (6,700)

    Cost of advertisement (1,300)

    Brokerage fees (12,500)

    Legal fees for defending the title (4,100)

    Cost of extension to bungalow (50,000)

    Disposal price 425,400

    RGPT

    Disposal price 425,400

    (-) Acquisition price (301,700)

    Chargeable gain 123,700

    (-) Exemption (12,370) higher of 123,700x10% or 10000

    Net chargeable gain 111330

    (x) RGPT rate 30%

    Tax/RGPT payable 33,399

    20.8.2019- 15.9.2021 <3 years


    Allowable loss:

    Chargeable gain 70,000 40,000

    (-) Exemption (10,000) (10,000)

    Net chargeable gain 60,000 30,000

    (-) Allowable loss (50,000) (30,000) <<<<< c/f 20,000

    (10,000) Nil

    X RGPT rate

    RGPT payable XX

    (-) Loss relief (X)

    Net RGPT payable X

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