CGT Chapter 1 & 2

Question 1

Who is chargeable to capital gains?

Answer 1

UK residents on disposals of worldwide assets
Non UK residents in respect of disposals of UK land

Question 2

The concept of a disposal includes:

Answer 2

sales
gifts
loss / destruction of an asset

Question 3

Exempt assets

Answer 3

Cars
Decorations for valour
EIS and SEIS shares
Foreign currency & foreign currency bank accounts
Gilts
Qualifying Corporate Bonds
Shares in an ISA
VCT shares (First £200k)
Wasting chattels life <50 years
Chattels bought / sold for <£6k

Question 4

No gain no loss on….

Answer 4

Spouse transfers
Gifts to charity

Question 5

Annual exempt amount is…..

Answer 5

£12,300

Question 6

Gains (other than residential property are taxed at….

Answer 6

20% if the individual is a higher rate taxpayer
10% if the individual is a basic rate taxpayer

Question 7

Residential Property gains are taxed at…..

Answer 7

28% if the individual is a higher rate taxpayer
18% if the individual is a basic rate taxpayer

Question 8

Incidental costs of disposal that are deductible….

Incidental costs of acquisition that are deductible ….

Answer 8

Legal fees
Advertising

Legal fees
Stamp duty land tax

Question 9

Enhancement expenditure

Answer 9

Reflected in the state of the asset at disposal is deductible