Capital Gains Tax Flashcards
Gilt Edged Securities?
Exempt
qualifying corporate bonds
exempt
national savings certificates and premium bonds
exempt
shares and investments held in an ISA
exempt
part disposal
mv of part disposed/ total mv’s
a current year loss must be….
set of against current year gains to the fullest extend even if this wastes ae or creates an overall loss (this overall loss is then c/f)
B/f losses?
set against it AFTER current year losses and ae
s.64 claim?
once this claim has been made can then elect to offset rest against capital gains- which is = to the lower of
- unrelieved tradin losses
- gains after cy losses and bf losses BUT NOT after the ae
what is a connected person?
a spouse/civil partner
disposals between spouses?
on a no gain no loss basis
What are connected persons?
- trustees of trust in which individual was settlor children and s parent and s siblings and s spouses : siblings and spouse parents and spouse
disposal to connected person?
what if it’s a loss?
AT MV
Can only be offset when a gain arises with that same connected person
gifts of quoted shares
lower quoted price + 1/2 (higher quoted price-lower quoted price)
what is the normal due date for CGT payment?
31 Jan following tax year of disposal
when can cgt be paid in instalments?
when its in respect of land or shares in an unquoted company or from a controlling interest in any company. Paid in 10 instalments, which are interest bearing. Starting on the normal due date
UK res property payments?
from 6 april 2020, they must file a uk land return together with a payment on account of the cgt within 30 days of completion. this is taxpayers best estimate of the cgt that would be due in relation to uk residential property disposals to date in ty.
what is a qualifying asset for roll over relief?
Used in trade!!!
L and B
p and m
goodwill (individuals only- not companies)
what are the rules for ror?
asset must be acquired 1 year before or 3 years after
when is ror restricted?
for non business use= only business proportion
when not ass reinvested
when the replacement asset is a depreciating asset?
base cost of asset not reduced by rollover: gain frozen until:
disposal of replacement asset
10 years after acqn
replacement asset ceases to be used in the taxpayers trade
depreciating asset is one with an expected life of 60 years or less
p and m always treated as this unless its part of a building in which case it will depend on whether the buildings lease is less than 6 years
whatt is gift relief available on?
BUSINESS ASSSETS!!
- need at least 5% of voting rights
shares and securities- unquoted or donors personal company: NOT on the gift of shares where the donee is a company
how does gift relief work?
deducting gain from the base cost of the asset for the donee
gift relief when the company holds some investments?
CBA/CA
BADR
All or part of a trading bsiness?
qualifies IF they have owned for a period of two years ending with the date of disposal
BADR
shares and securities
‘personal trading company’- 5% sc, 5% voting rights, 5% right to dp, assets on winding up and proceeds on sale of company. MUST BE OFFICER OR EMPLOYEE
- also must have held for two years
BADR
assets of trading business following cessation
qualifyig period:
2 years up to cessation and 3 years after
BADR
what if shareholding becomes diluted?
can elect for badr to continue up to date of share issue = deemed to have sold all of their shares and then reaquired them on the date of the share issue for their market value, futher election to defer the gain on notional disposal until actual disposal.
cumulative lifetime limit on badr gains?
1000000
when must a claim for badr be made by?
12 months from 31 jan following tax year in which disposal id made- 31 jan 2023 for 20/21
lifetime limit of investors relief?
10 mill
investors rlf
what qualifies?
disposal of shares by individual:
must have been subscribed for as ordinary shares by the individual making the disposal
be unlisted
have been held for 3 years
must have been issues on or after 17 march 2016 and been held for a period of 3 years after 6 april 20216
If someone has more then one residence when do they have to elect which one will be main residence for PRR?
2 years fom purchasing second property
when is the deemed 9 months extended?
to 36 months for disabled people or those who are long term care home residents.
letting relief is…
the lower of
letting gain (e.g gain after letting relief)
prr
40000
