Basic Accounting Quick Help Required
Discussion
Hi all,
Kinda off the wall question, and I know that you will need much more detail to give accurate response but if we can try and help just with the information provided. ok here goes:
Person A Says: Due to the sales of certain properties, you will potentially be liable for a £6million tax bill if the sales where done using off shore companies and the beneficiaries are UK BASED.
Person B says: Am I right to to assume: to pay a £6million in tax would mean that you made circa £22million in profits in sales….. say that most property investors or developers only sell to show a 20% return on investments, that would mean that the total sales, to generate a £22million profit, which will then cause a £6million tax liability would need to be £110,000,000.+
does that make sense?
Kinda off the wall question, and I know that you will need much more detail to give accurate response but if we can try and help just with the information provided. ok here goes:
Person A Says: Due to the sales of certain properties, you will potentially be liable for a £6million tax bill if the sales where done using off shore companies and the beneficiaries are UK BASED.
Person B says: Am I right to to assume: to pay a £6million in tax would mean that you made circa £22million in profits in sales….. say that most property investors or developers only sell to show a 20% return on investments, that would mean that the total sales, to generate a £22million profit, which will then cause a £6million tax liability would need to be £110,000,000.+
does that make sense?
Hi,
The assumption is that in the uk one has to pay cgt at 28% on profits earned. This is based on uk property being transacted.
So if someone claims that the cgt payment is £6m then I was working backwards to see what would the the initial gross sale figure using the assumption that an investor in the property world would only sale to achieve 20% profit.
The assumption is that in the uk one has to pay cgt at 28% on profits earned. This is based on uk property being transacted.
So if someone claims that the cgt payment is £6m then I was working backwards to see what would the the initial gross sale figure using the assumption that an investor in the property world would only sale to achieve 20% profit.
Hi,
The assumption is that in the uk one has to pay cgt at 28% on profits earned. This is based on uk property being transacted.
So if someone claims that the cgt payment is £6m then I was working backwards to see what would the the initial gross sale figure using the assumption that an investor in the property world would only sale to achieve 20% profit.
The assumption is that in the uk one has to pay cgt at 28% on profits earned. This is based on uk property being transacted.
So if someone claims that the cgt payment is £6m then I was working backwards to see what would the the initial gross sale figure using the assumption that an investor in the property world would only sale to achieve 20% profit.
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