BL - Tax - Individual IR and Roll over

Question 1

What are the conditions for Investor’s Relief?

Answer 1

Shares will be qualifying shares if:
- fully paid ordinary shares issued for CASH on or after 13 March 2016
- The company is (and has been since the shares were issued) a trading company or the holding company of a trading group
- At the time of issue, none of the company’s shares were listed on a recognised stock exchange
- shares held for at least 3 years from 6 April 2016 (and continuously since issue)
- the individual is NOT an officer or employee of the company

Question 2

What is the rate for Investor’s Relief

Answer 2

10%

Question 3

What assets does CGT Rollover Relief apply to?

Answer 3

Business:
- Land and Buildings
- fixed plant and machinery
- Goodwill

Question 4

How does Rollover Relief work for CGT??

Answer 4

The new asset’s base cost is reduced by the gain on disposal of the replaced asset.
The whole gain must be rolled over (it is not possible to use AEA)

Question 5

How does Gift of business asset (hold over) relief work for CGT?

Answer 5

Reduces the asset’s base cost by the donor’s gain to M.V.

Question 6

What assets can Gift of business asset (hold over) relief for CGT apply to?

Answer 6

• Goodwill
• Assets used in business
• Shares in a trading company not quoted on a stock market

Question 7

What is the lifetime allowance for Investor’s Relief

Answer 7

£10m