The calculations for the capital gains tax Case Study

The calculations for the capital gains tax - Case Study Example The calculations for the capital gains tax are shown in the appendix. From the calculations it may be observed that it is advisable to sell off the business building before 05th April 2008 as you can avail the indexation allowance and taper relief which are no more available. It may be noted that the indexation and taper relief are the allowanced granted by the government to provide for the increase in the asset value due to inflation (Chris Horne). In case you decide to sell of the property after 05th April 2008 you many have to pay higher CGT of 18,000. However in the case of the personal paintings since they have been acquired only in the year 2005 they do not stand eligible for any allowances and the capital gains will simply be the difference between the sale proceeds and the cost. Hence in this case it is advisable to sell the paintings after 05th April 2008 as the CGT on the chargeable gains can be paid at lower tax rate of 18 percent. Income from employment is subjected to income tax as well as Class 1 National Insurance Contributions NIC). Payment of the Tax and NIC are normally undertaken by the employer through the PAYE system. However the employee who has other incomes subjected to tax and whose tax is not fully paid by the employer may complete a tax return and pay the NIC. Contributions to NIC are being made by both the employer and employee. The employee has to make contributions to NIC at 11percent or 9.4 percent between the primary threshold limit and the upper earnings limit. A charge of 1 percent is payable for earnings above the upper earnings limit. No NIC is payable by the employee or employer on the earnings up to the primary threshold limit. Depending on whether the employee is within the State Second Pension (S2P) or whether he has contracted out using a final salary (FS) or money purchase scheme (MP) the rates of NIC payable on earnings are determined. Particulars Contracted in Within S2P Contracted Out Other than S2P Primary Threshold to Upper Earning Limit 11.0% 9.4% Above Upper Earning Limit 1.0% 1.0% As per the calculations shown in the appended income statement assuming that you have contracted out of the state pension scheme, you may have to contribute 9.4 percent of 23,760 i.e. 2233.44 towards the National Insurance Contribution. Additional Tax Burden on Cigarettes and Wines We understand that you and your wife are both heavy smokers and drinkers. Beware that the budget for the year 2008 has put additional tax burden on the cigarettes, wine, and beer to the extent of 0.14p on a bottle of wine, 0.4p on a pint of beer and 0.11p on a pack of cigarettes and to this extent the cost of these items would go up. We do hope you will revise your consumption of these items in view of increased burden on your income. Other Tax Credits The budget for the year 2008 has made the following changes in other Tax Credits for which you are entitled. Tax Credits 2007-08 2008-09 Child Tax Credit - Family Element 1,845 2,085 Working Tax Credit - Basic 1,730 1,800 Married Couple Allowance 2,440 2,540 We have provided

Argument essay on achievement gap Example | Topics and Well Written Essays - 750 words

Argument on achievement gap - Essay Example The issue needs to be resolved because despite of many efforts, an analysis of the different states in 2011 revealed that there were still five states in America where this achievement gap had increased since 2003. This analysis explained that an effective policy for overcoming this issue is needed in the country (Johnson 11; Lynch). The achievement gap is a matter of concern as it affects a large number of American students and this issue needs to be addressed with strong and effective strategies for the improvement of the educational system of the country. The achievement gap has been observed not only in primary and secondary schools but it has also been seen in children during their kindergarten years. A further analysis of achievement gap in minority groups has revealed that this gap is known to exist in schools even if the economic status of the all the students is the same. This means that each cause of an achievement gap is independent and it is not essential that students co ming from good economic backgrounds would be saved from this issue (Williams 26,27). According to an analysis done by the National Assessment of Educational Progress in 2007, it was seen that white students were better achievers in reading and math tests which were conducted in the fourth and eighth grade (Lynch). Thus, these surveys and reports indicate that the achievement gap is a grave issue and needs a thorough assessment. This is because considering the statistics of the immigrants in the country; it can be judged that this gap would rise if it is not tackled. This can be assessed as statistics reveal that from the year 2000 till the year 2050, the number of whites would reduce in the United States to 49 percent from 68 percent and the Latinos would form 40 percent of the America population. In a similar trend, the African Americans would rise by 1 percent whereas the Asian population would surge by four percent (Haller). The optimal way to overcome this achievement gap in the country is the formulation of effective instructions and interventions for the students. The achievement gap reduction can be achieved by providing improvement at three levels. These include classroom interventions, targeted interventions and intensive interventions. The most important of these is the classroom intervention where eighty percent of the students of the class learn. The students should be encouraged to learn and study and should be motivated to avoid failing in class. With this, the other interventions should also run side by side for students who are in need of them. For example targeted interventions should be carried out for approximately fifteen percent of the students who have failed to achieve good grades due to their socioeconomic status or due to having difficulties in learning English and reading. Intensive interventions should be saved for students who are not motivated despite of classroom and targeted interventions and do not seem to be interested towards the improvement of their education. These students should be handled individually by a team of instructors and psychologists. This three level process is the most optimal way to overcome the achievement gap in the country (Johnson 12,13). The program focusing upon interventions has not been practiced in the United Sta