Basics

Question 1

CGT Basics

When Does a Capital Gain Arise?

Answer 1

When a Person Disposes of a Capital Asset at a Profit.

Question 2

CGT Basics

What Commonly Disposed Asset is Exempt From CGT?

Answer 2

Cars.

(Excl. Items Such as Personalised Licence Plates)

Question 3

CGT Basics

How Are Assets Inherited on Death?

Answer 3

The Asset’s Base Cost is Uplifted to Market Value.

‘Probate Value’.

Question 4

CGT Basics

Gifts to Charities Take Place at ‘No Gain, No Loss’ if:

Answer 4

• A Gain Arises; or
• The Asset is Sold to The Charity at Undervalue.

Question 5

CGT Basics

What is The Annual Exempt Amount?

Answer 5

Deducted to Find Taxable Gains.

£6,000 For 2023/24.

Question 6

CGT Basics

The Rate of CGT Charged Depends on:

Answer 6

• The Individual’s Taxable Income; and
• The Nature of The Asset Being Disposed.

Question 7

CGT Basics

Enhancement Expenditure is Reflected in:

Answer 7

• The Asset’s State at Disposal; or
• Any Costs Incurred to Preserve a Title.

Question 8

CGT Basics

Losses on Qualifying Trading Company Shares Can be:

Answer 8

• ‘Normal’ Capital Losses; or
• Set Against Net Income of The Current or Preceding Year.

(e.g., EIS & SEIS Share Disposals)