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It all works out the same. THEPUMA has just factored the 75% taper relief into the 40% tax to get 10% rather than taking it off the amount available for distribution.
The way the PUMA has calcualted things is nowt like the way I have....which I have lifted directly from SJD accountants guide.....
They use 75% taper relief...like I have done..
At NO point anywhere is 10% mentioned...which is why I am dead confused!! Is the way SJD have worked things completely wrong (which I doubt)..
BTW - what a great way to spend a Friday night ;-)
They both get to the same result.
You've done:
((100K - 75%) - 9,200) * 40%
which is the same as:
(100k * 0.25) - 9,200) * 40%
which is also equal to:
(100k - (9,200 * 4)) * 10%
and then:
(100k - 36,800) * 10%
It all works out the same. THEPUMA has just factored the 75% taper relief into the 40% tax to get 10% rather than taking it off the amount available for distribution.
Sorry Billy...as others have said, as well the flat rate 18% CGT coming in as planned, Darling has announced a 10% "entrepreneur allowance" for company disposals up to £1m (lifetime limit).
What is not 100% clear yet is whether the 10% rate will apply to ESC C16 disposals. And even if it did, ESC C16 may or may not be granted after all.
Do a search - all the info you need is here.
Cheers! I've searched...I've read loads of stuff...and I'm STILL not sure where the land lies!
So is my calc above completely off the mark? Sure I've seen something similar in the SJD guide?
Sorry Billy...as others have said, as well the flat rate 18% CGT coming in as planned, Darling has announced a 10% "entrepreneur allowance" for company disposals up to £1m (lifetime limit).
What is not 100% clear yet is whether the 10% rate will apply to ESC C16 disposals. And even if it did, ESC C16 may or may not be granted after all.
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