CGT CH11

Question 1

Criteria for chargeable gain

Answer 1

When a chargeable person makes a chargeable disposal of a chargeable asset

Question 2

Types of chargeable assets

Answer 2

Shares
Land and buildings
Chantels
Goodwill

Question 3

Chargeable persons and disposals types

Answer 3

Person:
Individual
Companies if they pay ct instead of cgt
Business partners
Trustees

Disposal:
Sale of Whole or part of an asset
Gift of whole or part of an asset

Question 4

Part disposal formula

Answer 4

Cost x A/A+B

Question 5

Small part disposals criteria

Answer 5

No disposal immediately chargeable if:
1. Gross proceeds <= 20% of MV OF THE WHOLE PLOT AND
2. Gross proceeds <= £20k and
3. Aggregate sales of land and buildings in the year <=£20k

Question 6

Rates of cgt

Answer 6

10% then 20%

Or 18% then 28% for residential properties

Question 7

Cgt losses in the year of death?

Answer 7

1. Cary excess losses back 3 years on LIFO basis
2. Losses cb to years before the year of death are offset bs taxable gains (after AEA)
3. Hmrc will repay any cgt paid for earlier years
4. But any tax repaid will be added to the death estate for IHT

Question 8

Payment dates of cgt

Answer 8

Usually 31st jan after the tax year of disposal

However cgt payable within 60 days for residential properties disposal date