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A chargeable gain arises when: 3cz Lernen beginnen
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A chargeable DISPOSAL is made,| by a chargeable PERSON,| of a chargeable ASSET. DPA - Deutsche Presse Agentur
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CTG - individual vs company type of tax: Lernen beginnen
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Individuals pay CGT. Companies pay C.T.
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# Lernen beginnen
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Partners in a partnership. | Individual. | Trustee*. | Company. PITC *Gift into a trust is treated as a disposal at MV for CGT purposes, and a chargeable gain arises. However, as the transfer will be a lifetime transfer for the purposes of IHT, the gain may be deferred by making a gift relief claim within 4 years.
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Range of chargeable assets: Lernen beginnen
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All assets unless specifically exempt.
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Chargeable disposals arise in case of: # Lernen beginnen
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Gift. | Gift - partial. | Sale. | Loss. | Destruction.| Compensation for damage. | CAPITAL SUMS received regarding SURRENDER of rights. GG SLD CC
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3 Lernen beginnen
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Trading disposal. | Transfer on death. | Charity gift. TTCh
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CGT and Qualifying corporate bonds (QCBs) owned by individuals. Lernen beginnen
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CGT and trading inventory. Lernen beginnen
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Lernen beginnen
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CGT and Individual savings account (ISA) investments. Lernen beginnen
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also: Main residence (subject to occupation), | Chattels bought and sold up to £6000 | National savings certificates (NSCs). | Foreign currency for private use. | Prizes and betting winnings.
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CGT and endowment policy proceeds. Lernen beginnen
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endowment policy - ubezpieczenie na życie z rentą kapitałową
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Lernen beginnen
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CGT and wasting chattels (like racehorses, greyhounds or boats): Lernen beginnen
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A wasting chattel is a chattel with a useful life not exceeding 50 years.
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CGT and shares in venture capital trust (VCT): Lernen beginnen
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31 January after end of tax year.
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CGT. Consideration determination (in general): 2 Lernen beginnen
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Disposal proceeds. | or Market value.
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CGT. Date of disposal determination: 2 Lernen beginnen
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Date of contract. | Date of conditions being satisfied for conditional contracts.
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CGT. Deductible incidental costs of acquisition: # Lernen beginnen
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Valuation fees. | Auctioneer's fees. | Stamp duty. | Advertising costs. | Legal expenses. VASAL
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CGT. Acquisition cost. A probate value is... Lernen beginnen
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Letting relief. | EIS relief. | SEIS relief. | Gift relief. | Rollover relief. | Incorporation relief. | PPR. LES GRIP EIS - Enterprise Investment Scheme. | Seed enterprise investment scheme (SEIS) reinvestment relief.
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CGT % is depending of availability of two reliefs: 2 Lernen beginnen
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BADR | Investor relief (IR) Business asset disposal relief.
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For UK residential property, CGT must be paid to HMRC within ... days of disposal. Lernen beginnen
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CGT. Part disposal formula: for example: insurance payment for damaged painting. Lernen beginnen
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Cost = MVoPD ÷ (MVoPD+MVoR) A=MV of part disposal | B = MV of remainder
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CGT. Assignment of short lease formula: short lease = below 50 years Lernen beginnen
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Allowable cost × (Lease % of remaining life at date of disposal ÷ Lease % of remaining life at acquisition date) AC × (L% RLAD÷ L% RLAA) Cost is adjusted to reflect depreciating nature of the asset. | page 102/331 exam kit.
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CGT; Part disposal. Incidental costs which relate wholly to the part SOLD are: Lernen beginnen
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CGT; Part disposal. Incidental costs which relate to the WHOLE ASSET are: Lernen beginnen
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CGT. Small part disposal applies if proceeds of part disposed of are: 2 + treatment of proceeds Lernen beginnen
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up to 5% of value of whole at date of part disposal | or up to £3000; (Proceeds are deducted from the base cost of part retained).
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CGT. Small part disposal for land and buildings the limit is: 2cz Lernen beginnen
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20% of the value of the asset, | provided that PROCEEDS from land and building sales do not exceed £20000 in the year.
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CTG. Assignment of long lease: at least 50 years. Lernen beginnen
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CGT. Assets lost or destroyed with NO insurance proceeds: Lernen beginnen
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Capital loss (normal computation).
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CGT. Assets lost or destroyed. Insurance proceeds received and reinvested within ... months elect for... Lernen beginnen
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12 months, | elect for no gain no loss.
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CGT. Assets damaged and insurance proceeds USED in restoration is treated as ... | unless... 2 Lernen beginnen
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Part disposal | unless 'rollover' election made to deduct proceeds from cost of restored asset on a subsequent disposal.
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CGT. Assets damaged and insurance proceeds NOT used for restoration formula: Lernen beginnen
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A= Insurance received. | B = Value of damaged asset.
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Current year capital losses ... be offset against gains if possible. They ... be restricted to preserve AEA. Lernen beginnen
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CY capital losses - carry forward remaining losses.
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CGT. Capital losses brought forward rules: Lernen beginnen
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Offset after the AEA. | If net chargeable gains after the AEA are nil then continue to carry forward.
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CGT. Capital losses in the year of death rules: 3 Lernen beginnen
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Can be carried back for 3 years. | LIFO basis. | Can be restricted to preserve AEA. 3LA
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CGT. Connected persons. Consideration for disposal = ... value Lernen beginnen
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CGT. Connected persons. Loss on disposal can only be offset against... Lernen beginnen
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gains to the same connected person.
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Connected persons examples: 3 Lernen beginnen
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Spouse of sister of spouse. | Business partner (and spouses and relatives).| Company controlled by this individual. Children and grandchildren and their spouses. Spouse or civil partner and their relatives are also connected persons.
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For CGT purposes, spouse or civil partner transfers - the connected persons rules are... Lernen beginnen
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CGT. Spouse transfers rule: Lernen beginnen
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Take place at no gain no loss, regardless of any actual consideration which may have been received.
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CGT. Transfer rules when couple are not living together: Lernen beginnen
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special spouse rules are withdrawn
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CGT. Spouse or civil partner. The transferor is deemed to dispose of the asset at its ... cost. Lernen beginnen
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at its acquisition cost. That is, the spouse takes over the asset at its original cost.
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Liquidation - potential reliefs in case of capital distributions: 2 Lernen beginnen
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Substantial shareholding exemption. | BADR.
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Apart from disposal, the gift relief crystallises (and therefore is immediately chargeable) when... 2cz Lernen beginnen
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when donee emigrates and plan to stay abroad longer than 3 years | or plan to stay up to 3 years but not taking full-time employment abroad. And not dispose of item while abroad.
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Individual sold his house for £200,000 while original price was £75,000. What is the CGT payable? Lernen beginnen
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0 as private residence relief is available to exempt the gain on the house used as main residence.
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Calculate MV of shares covered by AIA and available losses which may be included into loan account CGT-free and MV of share which must be cover by Incorporation Relief: 2 AIA: 12,300, available losses: 9,700. | Total gain 66,080. | MV of assets transferred on incorporation: 118,000. Lernen beginnen
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CGT-free amount on loan account: 39,286. | Gain deferred by incorporation relief: 78,714. (22,000÷66,080) × 118,000 | (44080÷66,080) × 118,000
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Calculate the gain on incorporation: Building constructed on 1 July 2020, MV 36,000, land MV 10,000. | On incorporation: building 75,000, land 12,000. Lernen beginnen
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(87,000 + 1,080 [SBA claimed]) – 46000 In the examination, questions will only be set where the building was constructed or renovated on or after 1 April 2020 and the construction date will be given. Where buildings are purchased (as opposed to newly constructed) SBA are generally unavailable.
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