a188149b9ece492bbe8a8c227c59dce7.pdf - F6 Taxation(UK...

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F6 Taxation (UK) Lecture Note 88 4006-026-018 Prepared by Du Wei Chapter 15 Chargeable Gains for Company Company’s chargeable gains form part of the taxable total profits and are liable to corporation tax. 1. Chargeable gains computation Disposal proceeds Less: incidental cost of disposal (professional service, advertising, etc) Less: allowable expenditure (original cost, incidental cost on acquisition improvement expenditure) Unindexed gain Less: indexation allowance to disposal date Indexed gain Less: rollover relief Less: capital loss of current period Less: capital loss carried forward Chargeable gains 2. Indexation Allowance The indexation allowance aims to eliminate inflation factors, ensure that capital gains are taxed on the increase in the real term of an asset s value. Indexation allowance= allowable expenditure x indexation factor Indexation factor = (RPI in the disposal month RPI in the acquisition month)/RPI in the acquisition month. Indexation factor is normally rounded to
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  • Spring '10
  • santos
  • Capital gains tax in the United States

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