CGT Flashcards
Chargeable person / not
Individuals
Chargeable
Chargeable person / not
Business partners treated as owning share of partnership assets
Chargeable
Chargeable person / not
Trustees
Chargeable
Chargeable person / not
Companies paying CT on gains
Chargeable person
Chargeable person / not
Registered charities using gains for charitable purposes
Exempt CGT
Chargeable person / not
Friendly societies
Exempt
Chargeable person / not
Local authorities
Exempt
Chargeable person / not
Registered pension schemes
Exempt
Chargeable person / not
Investment trusts
Exempt
Chargeable person / not
Approved scientific research associations
Exempt
Chargeable disposal/not
Sale of whole/part asset
Chargeable
Chargeable disposal/not
Gift of whole/part asset
Chargeable
Chargeable disposal/not
Receipts of capital sums on surrender of rights over asset
Chargeable
Chargeable disposal/not
Loss/destruction of whole/part of asset
Chargeable
Chargeable disposal/not
Appropriation of assets as trading stock
Chargeable
Chargeable disposal/not
Asset appropriated into trading stock
Disposal of asset at market value - elect to be treated as gain or loss and cost adjusted for gain / loss that would have occured
Chargeable disposal/not
Gift to charities
Exempt
Chargeable disposal/not
Gift to art galleries/museum
Exempt (if used for purposes of institution)
Chargeable asset/not
Tangible (land furniture art)
Chargeable
Chargeable asset/not
Intangible (goodwill, shares, crypto, leases)
Chargeable
Chargeable asset/not
Legal tender (cash)
Exempt
Chargeable asset/not
Motor cars (inc vintage and classic)
Exempt
Chargeable asset/not
Medals awarded for valour if person disposing did not acquire for money
Exempt - if did acquire for money non-wasting chattle rules
Chargeable asset/not
Wasting chattels except assets used in business where owner has/could have claimed CA
Exempt
Chargeable asset/not
Chattels non-wasting or used in business if sold at gain for consideration < 6000
Exempt
Chargeable asset/not
Gilt-edged securities
Exempt
Chargeable asset/not
Qualifying corporate bonds
exempt
Chargeable asset/not
NSI & premium bonds
Exempt
Chargeable asset/not
Shares and investments in ISA
Exempt
Chattel
Item of tangible moveable property, specifically excluding goodwill, shares and leasees
Wasting chattel
Chattel with predictable life at date of disposal < 50 years. Include caravans, boats computer and animals (P&M
non-wasting chattel
Predictable life at date of disposal of more than 50y
Qualifying corporate bond is defined as
sterling denominated, non-convertible, loan stock representing normal commercial loan, interest upon which is neither excessive, nor dependent on business performance
CGT - Allowable costs
acquisition cost
incidental cost of acquisition (legal fees etc)
Enhancement expenditure
Part disposal cost
Cost * MV part disposed / (MV disposed+MV retained)
Annual exempt amount for CGT
12300
If losses bought forward these are set against
First available net gains after deduction of CY losses and AEA
Under s64 trading loss relief can be set against
Chargeable gains for CY and PY (CYCB), claim made against general income before gains in same year
Amount of S261B loss (CYCB) is lower of
- unrelieved trading loss
- CY gains - CY losses and capital losses bought forward
When is CGT due
31 January following tax year of disposal
When can GCT be paid by instalments
When CGT arises as result of a gift of land or shares in a company out of a controlling holding, or. any number of shares in an unquoted company.
When paid in instalments, CGT is due
10 yearly instalments starting 31 January after end of tax year gain arose, provided election made in writing to HMRC, interest will be charge
Payment of CGT on disposal of UK rental property
UK land return and payment on account due within 60 days of completion
Who is an individual connected with
Spouse
Relatives and their spouses
Spouses relatives and their spouses
Business partners and their spouses/relatives
Connected - trustee of a settlement
Connected with the trust settlor and anyone connected with the settlor. connected from start of trust.
A disposal to a connected person is always deemed
to be made at MV at the date of disposal
Loss incurred on disposal to a connected person can only be offset against
Gains made on disposal to the same connected person in same or future tax years
Disposals of shares are matched against acquisitions of the same class in what order
- same date
- following 30 days FIFO
- any shares in s104
What to do with bonus issue
Bonus shares deemed to have been acquired on same date as original shares
bonus issues attach pro rata to s104 at nil cost
What to do with rights issue
Deemed to have been acquired on same date as original shares to which they relate
attach pro rata to s104 pool, number of shares added and cost of rights shares increases cost
Valuing quoted shares
Lower quoted price + 0.5*(higher quoted price - lower quoted price)
