C Reliefs Flashcards
Conditions for rollover relief?
Must be a qualifying asset and used in a trade of the taxpayer
Reinvestment for rollover relief?
Must reinvest between 12 months before and 3 years after date of disposal of the old asset
When is complete rollover relief given?
When all proceeds < cost of new factory
Gain in depreciating asset is postponed until earliest of (disposal)
Disposal of new asset
Gain in depreciating asset is postponed until earliest of (ceases)
Date new asset ceases to be used in the trade
Gain in depreciating asset is postponed until earliest of (10 years)
10 years after the new asset was acquired
When fixed plant and machinery is sold for less than cost? (rollover relief)
It is not allowable
Chargeable business assets (gift holdover relief)
An asset used in a trade
Shares and securities
Claim for gift holdover relief time frame?
Must be made within 4 years of the end of tax year in which gift was made
Gift holdover relief proportion?
Only business use qualifies for the relief
CGT cost calculation (gift holdover)
Market value - held over gain
What happens to deemed cost (gift holdover)?
Added to holdover gain
When can a gain be held-over in fall?
All the company’s chargeable assets are the business assets
When proceeds £1250000 < reinvestment cost £1400000?
All relief is given
When proceeds £1250000 > reinvestment cost £650000
Do calculation. But if chargeable gain < reinvested, relief is 0
Business asset disposal relief abbreviation?
FTTW
F in business asset relief disposal?
Five%
T in business asset relief disposal?
Trading company and two-year ownership before disposal
W in business asset relief disposal?
Work there
Dos residential property qualify for BADR?
`No
When should AEA be first applied to?
What doesn’t qualigy for BADR
When a gain is less than <£1m
Qualifies for BADR
If taxable gain is less than £37700 in BADR worknig?
£37700 - taxable income - asset relief @ 10%
When does disposal of a house not qualify for a gain or loss?
When it is transferred between spouses
Should net proceeds be in a part disposal fraction?
No
The base cost working (when no rollover relief available)?
Proceeds of replacement - cost of the new factory
Base cost working (what is the deemed cost) for gift holdover relief?
Market value @ date of gift
When is cost not included in the base cost working for rollover relief?
When reinvestment proceeds > original proceeds
Sale at undervalue (gift holdover relief) meaning?
If asset sold < market value
Sale at undervalue gift holdover calculation?
(MV - cost) - (actual consideration - cost)
Chargeable gain in gift holdover relief?
Actual proceeds - actual cost
How is indexed allowance capped?
At the unindexed gain
Chargeable gain in a takeover calculation?
Cash proceeds - cost of cash
Calculate gain for a destroyed asset?
Insurance proceeds - original cost
Are cars exempt in capital gains computation?
Yes
Are non-wasting chattels less than £6000 exempt in capital gains computation?
YES
Calculate allowable cost of an asset?
Proceeds - cost
What is classified as revenue expenditure in property
When something is an integral part of a property (floor but not an extension)
When is a cost of replacement required in rollover relief?
If sale proceeds have not been fully reinvested
In part disposal calculation?
The proceeds of parts sold is shown in denominator and numerator
WHen can elect to disregard the part disposal?
If all compensation received has been used to restore the asset
Can spouses transfer annual exempt amount?
No
Interspouse transfer?
Proceeds - original cost
