Business Relief (5)

Question 1

Investors relief has its own?

Answer 1

Separate £10m lifetime limit and qualifying gains are taxed at 10%

Question 2

Qualifying shares in investors relief have (subscribed)

Answer 2

Subscribed for by individual on or after 17 March 2016 and held for a minimum period of three years from 6 April 2016

Question 3

Rollover relief qualifying relief?

Answer 3

Land and buildings
Fixed plant and machinery

Question 4

How must both old and new assets be used in qualifying assets? (rollover relief)

Answer 4

Must be used in the business

Question 5

Replacement asset criteria (rollover relief)

Answer 5

Must be bought in the period 12 months before to 36 months after the disposal of the old asset

Question 6

Claim time (rollover relief)

Answer 6

Claim must be made within 4 years from end of the tax year in which the disposal occurred

Question 7

When is full rollover relief only available?

Answer 7

When all the net proceeds from the sale of the old asset are reinvested in a new, qualifying assets

Question 8

When there’s non-business use in rollover relief?

Answer 8

Only rollover relief is limited in proportion to the business use

Question 9

If a new non-depreciating asset is acquired before the deferred gain becomes taxable (rollover)

Answer 9

Capital gain on original asset is then rolled over into new non-depreciating asset and then depreciating asset is effectively ignored

Question 10

Investors’ relief lifetime limit?

Answer 10

£10000000

Question 11

Investors’ relief rate of tax?

Answer 11

10%

Question 12

A gain within 12 months before or to 3 years after?

Answer 12

Qualifies for rollover relief in full

Question 13

Amount chargeable in business rollover relief rule?

Answer 13

Lower of:
Amount not reinvested OR the full gain

Question 14

Within the timespan and used in business and qualifying asset?

Answer 14

Rollover relief

Question 15

Calculate base cost in a building?

Answer 15

Cost - ROR

Question 16

Postponent to earliest of (depreciating asset business rollover)?

Answer 16

Disposal of the new asset

Date the new asset ceases to be used in the trade

10 years after the new asset was acquired

Question 17

Chargeable gain and base cost if let out 15% of the factory?

Answer 17

Multiply chargeable gain by 15%

Base cost of new factory by 85%

Question 18

When may entire gain be held over in rollover relief?

Answer 18

If all proceeds reinvested from the sale of a depreciating asset

Question 19

When is business asset disposal relief not available?

Answer 19

When the entire business hasn’t been dispsoed of

Question 20

Rollover relief in the workings is a balancing figure

Answer 20

A balancing figure

Question 21

Calculate rollover relief?

Answer 21

Gain - proceeds not reinvested

Question 22

When does reinvestment of proceeds received on disposal of the old asset take place (rollover relief)?

Answer 22

In a period beginning one year before and ending three years after date of disposal

Question 23

Expected life of < 60 years in business rollover relief?

Answer 23

A depreciating asset

Question 24

When is something not an allowable capital loss? (rollover relief)

Answer 24

When fall in value on plant and machinery has been relieved through capital allowances

Question 25

Selling for 70 in December 2023, replacement brought for 60 in June 2024? (rollover relief)

Answer 25

Proceeds not reinvested: 70 - 60 = 10

Question 26

When does deferred gain become chargeable alongside a depreciating asset (rollover relief)

Answer 26

Disposal or ceasure of new asset

Ten years has passed

Question 27

Which two assets qualify for rollover relief?

Answer 27

Land used by a sole trader in his business

Goodwill of a sole traders business

Freehold trading premises