CGT 6 Part Disposals Flashcards
1
Q
The allowable cost on a part disopsal is:
A
the percentage of the cost relating to the percentage you’ve sold. There’s an AB formula but you know.
2
Q
With enhancement expenditure ….
A
you need to identify whether all or just some of the
expenditure relates to the part being sold.
3
Q
Small part disposal of land?
A
A claim can be made to avoid calculating a gain on a small part disposal of land.
4
Q
What makes a part disposal small?
A
A part disposal is ‘small’ if both:
* the proceeds of the part disposal are less than or equal to 20% of the value of land;
and
* the total proceeds of all land sales in the year do not exceed £20,000.
The proceeds of the small part disposal are deducted from the cost of the land.