Alice
22-11-07, 03:59 AM
Hi,
These are few important basic tips relating to capital gains liability.
1. The calculation of the unindexed gain is the same for companies and individuals.
2. Market value is the value the asset can expect to realise if sold on the open market.
3. In case of companies, treatment of capital losses -
1. A capital loss is first set against any CAPITAL gains in the same accounting period.
2. If any capital loss remains, it is carried forward and set against the first available capital gains in future accounting periods.
3. When a company incurs a capital loss, the capital gain in the PCTCT calculation is nil, (never a negative figure). Capital losses are never set against other income.
Hope this helps
F6 Author
These are few important basic tips relating to capital gains liability.
1. The calculation of the unindexed gain is the same for companies and individuals.
2. Market value is the value the asset can expect to realise if sold on the open market.
3. In case of companies, treatment of capital losses -
1. A capital loss is first set against any CAPITAL gains in the same accounting period.
2. If any capital loss remains, it is carried forward and set against the first available capital gains in future accounting periods.
3. When a company incurs a capital loss, the capital gain in the PCTCT calculation is nil, (never a negative figure). Capital losses are never set against other income.
Hope this helps
F6 Author