C Reliefs

Question 1

Conditions for rollover relief?

Answer 1

Must be a qualifying asset and used in a trade of the taxpayer

Question 2

Reinvestment for rollover relief?

Answer 2

Must reinvest between 12 months before and 3 years after date of disposal of the old asset

Question 3

When is complete rollover relief given?

Answer 3

When all proceeds < cost of new factory

Question 4

Gain in depreciating asset is postponed until earliest of (disposal)

Answer 4

Disposal of new asset

Question 5

Gain in depreciating asset is postponed until earliest of (ceases)

Answer 5

Date new asset ceases to be used in the trade

Question 6

Gain in depreciating asset is postponed until earliest of (10 years)

Answer 6

10 years after the new asset was acquired

Question 7

When fixed plant and machinery is sold for less than cost? (rollover relief)

Answer 7

It is not allowable

Question 8

Chargeable business assets (gift holdover relief)

Answer 8

An asset used in a trade
Shares and securities

Question 9

Claim for gift holdover relief time frame?

Answer 9

Must be made within 4 years of the end of tax year in which gift was made

Question 10

Gift holdover relief proportion?

Answer 10

Only business use qualifies for the relief

Question 11

CGT cost calculation (gift holdover)

Answer 11

Market value - held over gain

Question 12

What happens to deemed cost (gift holdover)?

Answer 12

Added to holdover gain

Question 13

When can a gain be held-over in fall?

Answer 13

All the company’s chargeable assets are the business assets

Question 14

When proceeds £1250000 < reinvestment cost £1400000?

Answer 14

All relief is given

Question 15

When proceeds £1250000 > reinvestment cost £650000

Answer 15

Do calculation. But if chargeable gain < reinvested, relief is 0

Question 16

Business asset disposal relief abbreviation?

Answer 16

FTTW

Question 17

F in business asset relief disposal?

Answer 17

Five%

Question 18

T in business asset relief disposal?

Answer 18

Trading company and two-year ownership before disposal

Question 19

W in business asset relief disposal?

Answer 19

Work there

Question 20

Dos residential property qualify for BADR?

Answer 20

`No

Question 21

When should AEA be first applied to?

Answer 21

What doesn’t qualigy for BADR

Question 22

When a gain is less than <£1m

Answer 22

Qualifies for BADR

Question 23

If taxable gain is less than £37700 in BADR worknig?

Answer 23

£37700 - taxable income - asset relief @ 10%

Question 24

When does disposal of a house not qualify for a gain or loss?

Answer 24

When it is transferred between spouses

Question 25

Should net proceeds be in a part disposal fraction?

Answer 25

No

Question 26

The base cost working (when no rollover relief available)?

Answer 26

Proceeds of replacement - cost of the new factory

Question 27

Base cost working (what is the deemed cost) for gift holdover relief?

Answer 27

Market value @ date of gift

Question 28

When is cost not included in the base cost working for rollover relief?

Answer 28

When reinvestment proceeds > original proceeds

Question 29

Sale at undervalue (gift holdover relief) meaning?

Answer 29

If asset sold < market value

Question 30

Sale at undervalue gift holdover calculation?

Answer 30

(MV - cost) - (actual consideration - cost)

Question 31

Chargeable gain in gift holdover relief?

Answer 31

Actual proceeds - actual cost

Question 32

How is indexed allowance capped?

Answer 32

At the unindexed gain

Question 33

Chargeable gain in a takeover calculation?

Answer 33

Cash proceeds - cost of cash

Question 34

Calculate gain for a destroyed asset?

Answer 34

Insurance proceeds - original cost

Question 35

Are cars exempt in capital gains computation?

Answer 35

Yes

Question 36

Are non-wasting chattels less than £6000 exempt in capital gains computation?

Answer 36

YES

Question 37

Calculate allowable cost of an asset?

Answer 37

Proceeds - cost

Question 38

What is classified as revenue expenditure in property

Answer 38

When something is an integral part of a property (floor but not an extension)

Question 39

When is a cost of replacement required in rollover relief?

Answer 39

If sale proceeds have not been fully reinvested

Question 40

In part disposal calculation?

Answer 40

The proceeds of parts sold is shown in denominator and numerator

Question 41

WHen can elect to disregard the part disposal?

Answer 41

If all compensation received has been used to restore the asset

Question 42

Can spouses transfer annual exempt amount?

Answer 42

No

Question 43

Interspouse transfer?

Answer 43

Proceeds - original cost