4: capital gains tax

Question 1

7 exempt assets

Answer 1

Motor cars

Wasting chattels (>50yrs life)

Non wasting chattels if sold at a gain for consideration which does not exced £6000. There is marginal relief where proceeds exceed £6,000.

Gilt-edged securities

Qualifying Corporate Bonds (QCBs)

National Savings Certificates and Premium Bonds

Sahres and Investments held in an ISA

Question 2

Due date of payment of CGT

Answer 2

31 January following tax year of disposal

Question 3

What can you pay tax in installments for

Answer 3

Gift of land or shares in an unquoted company or from a controlling interest of any company, the CGT can be paid in 10 equal annual installments, starting on the normal due date of 31 January following the tax year. These installments are normally interest-bearing.

Question 4

What do people selling residential properties have to do

Answer 4

File a UK land return of the CGT within 30 days of completion.

Question 5

What is a depreciating asset (used in rollover)

Answer 5

Life of 60 years or less

Question 6

4 rules for qualifying disposals in business asset disposal relief

Answer 6

Trading business

5% ownership

Officer or employee

Must have owned for 2 years

Question 7

4 criteria for qualifying disposals on investors’ relief

Answer 7

Subscribed for as new ordinary shares

Unlisted trading company

Issued after 17 March 2016

Held for 3 years

Question 8

How is private residence relief calculated

Answer 8

(Actual and deemed occupation/ownership) x net gain

Question 9

Letting relief is: lower of 3 things

Answer 9

Letting gain

PRR

£40,000