CGT

Question 1

When does a gain from UK residential property need to be made? how is this worked out

Answer 1

30 days from completion… state date.

Take the gain and work out tatxable income 18%/28%

Question 2

When is gift relief restricted and how

Answer 2

For the gift of shares in a personal company.
Gain *CBA / CA

** remember somthing can be both
Non current assets are no included

Question 3

Relationship between Proceeds and costs

Answer 3

CL CH 
PL 
PH 
Exempt 
Proceeds = 9000
Gain is lower of actual gain or 5/3 *(gross porceeds- 6000)
Normal

Question 4

How do we deal with a loss on a disposal to a connected person

Answer 4

It is only realised when there is a chargeable gain to the connected person

Question 5

What are the reliefs associated with CGT

Answer 5

Gift relief
BADR
IR

Question 6

When is CGT Paid

Answer 6

Residencial property - 30 days after completion
Land/ unquoted shares/ controlling holding in quoted shares elect to pay in 10 instalments. First due 31st Jan of the tax year
31st Jan of the following the tax year.

Question 7

When does BADR occur

What is the lifetime limit

Answer 7

Shares in a trading company
At least a 5% holding
Employee
above have applied for the last 2 years

Trading asset used in unincorporated trading business
24 month ownership

1million

Question 8

When does IR apply

What is the lifetime limit

Answer 8

Disposal of shares

Shares in trading company 
36 month ownership 
Not an employee
subscribed to shares when new 
shares issue after 17th March 2016 
Unquoted company 

10 million

Question 9

What is the periods of absence treated as occupational

Answer 9

3 years any reason *
4 years working in the UK *
Any absence due to O/S work *
Last 9 months of o.ship

Must be followed by a period of occupancy