9. Chattels And Private Residence Flashcards

1
Q

What is a chattel?

A

Tangible moveable property

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2
Q

What happens if the cost is < £6000 and the proceeds are < £6000v

A

The item is exempt

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3
Q

What happens if the cost is > £6000 and the proceeds are

A

You restrict the loss

Gross proceeds =£6000

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4
Q

What happens if the cost is < £6000 and the proceeds are >£6000?

A

You choose the lower of:

  • normal gain
  • 5/3 X ( gross sale proceeds - £6000)
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5
Q

What happens if the cost is > £6000 and the proceeds are > £6000?

A

Normal capital gains disposal calculation

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6
Q

How is private residence determined?

A

By periods of occupation of the property. Properties owned but not lived in by the owner are fully chargeable to CGT.

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7
Q

What are the residential rates of capital gains tax?

A

Lower rate = 18%

Higher rate = 28%

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8
Q

How do you calculate principle private residence relief?

A

(Period of occupation / total period of ownership) X gain

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9
Q

What can be considered deemed occupation?

A
  • The last 18 months provided the property was lived in by the tax payer at some point.
  • Any period the taxpayer was overseas due to employment
  • Any period (up to 4 years) the taxpayer was employed to work elsewhere in the UK
  • Any period (max 4 years) self employed taxpayer had to work away from home
  • Any period what ever reason not exceeding 3 years
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10
Q

When can a period be considered to be deemed occupation

A

If the meet the criteria and are preceded and followed by actual occupation.

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