Capital gains Flashcards
1
Q
How do you calculate the gain on a gift to a registered charity?
A
It is exempt
2
Q
What assets to CGT apply to?
A
All assets except:
- cash (including rare coins)
- cars (including vintage)
- qualifying corp bonds/ISAs/NSC/gilt edged securities
- wasting chattels
3
Q
What is a wasting chattel and how are they treated for CGT?
A
Antiques with a mechanism
- clock
- musket
They are exempt for CGT
4
Q
What is a non-wasting chattel and how are they treated for CGT?
A
Antiques with no mechanism
- painting
- jewellery
Use the 6k rules
5
Q
What are the 6k rules?
A
Both <6000 - exempt
Proceeds >6000
Cost <6000
Lower of: normal gain
5/3 x (GP - 6000)
Cost > 6000
Proceeds < 6000
Proceeds are 6000
Both >6000, normal
6
Q
What is the method for pricing quoted shares for CGT?
A
The 1/2 up rule
