Capital Gains Tax

Question 1

What are the limits for the non-wasting chattels?

Answer 1

GP Cost Effect
< 6000 < 6000 Exempt
> 6000 > 6000 Normal
< 6000 > 6000 Deemed
> 6000 < 6000 Gain: 5/3(GP-C)

Question 1

How does the AEA of £6,000 after Chargeable gains?

Answer 1

Chargeable gains
Less: AEA
= Taxable gains

Question 2

How do you use the unused BRB to calculate CGT liability?

Answer 2

Unused BRB = 37700 - Taxable income
CGT @ 10% x unused BRB
CGT @ 20% x Remaining balance

Remaining balance = (Taxable gains - unused BRB)

Question 3

How do you calculate the cost of part-disposal of sets?

Answer 3

Cost x A/A+B

A = MV of sold
B = MV of retained