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.

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2
Q

With enhancement expenditure ….

A

you need to identify whether all or just some of the
expenditure relates to the part being sold.

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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.

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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.

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