Page 24 - F1 Integrated Workbook STUDENT 2018
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Chapter 1
6.4 Proforma
The standard proforma used to calculate capital taxes is as follows:
Proceeds X
Less: incidental costs to sell (X)
Less: incidental costs to buy (X)
Less: original cost of asset (X)
Less: enhancements (X)
––
X
Compensation for inflation (% X cost) (X)
––
Taxable gain X
––
The taxable gain will then be charged at the appropriate tax rate for that accounting
period.
The detailed calculations for both tax on trading income and capital taxes will
be looked at in further detail in the next chapter of this publication.
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