Capital Gains Tax Flashcards
1
Q
What is deducted from chargeable gains to calculate amount CGT is levied on?
A
Allowable losses and the annual exempt amount
2
Q
What is the base date for CTG?
A
31 March 1982
3
Q
When is the date of disposal of an asset?
A
Date the contract for sale becomes binding
4
Q
What CGT is payable on death?
A
None
5
Q
Two circumstances where a disposal is “not at arms length”
A
- Between individuals with a close connection
- Between unconnected people, e.g. when sold below market value
6
Q
Three kinds of deferred consideration
A
- Ascertainable
- Unascertainable
- Contingent
7
Q
How far in the future will a deferred consideration need to be for HMRC to agree to payments in instalments
A
18 months
8
Q
How is contingent consideration treated for CTG?
A
- Market value of asset taxed at time of sale
- When additional payment received, treated as a new capital gain
9
Q
What factors are used to indicate whether or not an asset is owned for trading?
A
- Subject matter
- Period of ownership
- Frequency of similar transaction
- Quantity purchased
- Work carried out on property
- Circumstances responsible for realisation
- Motive for purchase
- Organisation of the activity
- Financing of the transaction
- Method of acquisition
