Tx notes fa22 Final

 
Example 11 
On 1 December 2010 Z bought a copyright at a cost of £25,000. It had an estimated useful life of 30 
years, and an estimated residual value of £1,000.
Z sold the asset for £38,000 on 1 December 2022.
Calculate the chargeable gain arising on the sale of the copyright in December 2022. 
7. Payments on account for CGT on disposal of residential 
property 
Earlier in this chapter we learned that the CGT liability for a tax year was payable by the 31st January 
following the end of the tax year, so for 2022/23 any CGT payment must be made by 31st January 
2024. 
A payment on account however, along with a return to HMRC, must be made within 
30 days
of the 
disposal of a 
residential
property.
In computing the payment on account the following deductions should be made from the gain:
๏
Any 
current
tax year capital 
losses
incurred prior to the property disposal
๏
The 
AEA
of the tax year
๏
Any capital 
losses b/f
at the start of the tax year
It will also require an estimate of how much, if any, of the taxpayer’s basic rate band will be available 
for the tax year – this information will be provided in the exam.
P
×
( C – S)
L

---

108
Only on 
OpenTuition
you can find: Free ACCA notes 
•
Free ACCA lectures 
•
Free ACCA tests 
•
Free ACCA tutor support 
•
The largest ACCA community
June 2023 to March 2024 exams
Watch free ACCA TX lectures
The chargeable gain will then also be included in the normal self assessment CGT computation for 
the tax year with any payment on account then being deducted in deriving the final CGT liability to 
be paid by the normal due date of 31 January following the tax year. Once again as residential 
property has a higher rate of tax, any losses and AEA will be deducted firstly from the gain on the 
property in computing the CGT liability.
ILLUSTRATION: 
Lee is a higher rate taxpayer and during the 2022/23 tax year made the following chargeable 
disposals:
10 May 2022
A gain of £22,500 on the disposal of a painting
8 July 2022
A loss of £6,000 on the disposal of shares
31 October 2022
A gain of £67,500 on the disposal of a residential property
20 January 2023
A loss of £11,000 on the disposal of shares