Taxation Of Emma Essay

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INTRODUCTION Taxation can be defined as act of legal authorities of imposition of tax on commercial and non-commercial transactions. Individuals and business entities are liable to pay tax charges for the profit or benefit earned by them through operational activities in timely manner. Tax is levied in UK on the basis of statutory norms described by HMRC. Taxes is payable in UK at minimum three different level i.e. central government, local government and devolved national government (Citron, 2010). Present study is focused on description of tax obligation of Emma by considering operational activities of her business. For this aspect description of major taxes will be provided such as NIC, corporation tax, capital gains tax, VAT and personal tax. …show more content…
Computation of marginal relief
= Standard Fraction x (U – A) x N / A
In this formula:
U Upper profit limit
A Profits
N Total profits Standard Fraction (7/400)

=((7/400)*(1500000-300000))*(£282,222.00/£282,222.00)
=£21000
Computation of capital gain tax by Emma
Table 6: Statement showing computation of capital gain tax of Emma
Particulars Amount
Proceeds from sales
Equity shares

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