CGT - Chattels Flashcards
1
Q
Introduction
The Term ‘Chattel’ Means:
A
‘Tangible Moveable Property.’
(Assets That Can be Seen, Touched & Moved)
2
Q
Wasting Chattels
What is a Wasting Chattel?
A
A Chattel With a Predictable Life of Less Than 50 Years.
3
Q
Wasting Chattels
Examples of Wasting Chattels Include:
A
- Racehorses
- Computers
- Plant & Machinery
HMRC Regard Clocks & Watches as ‘Machines’ For CGT Purposes.
4
Q
Wasting Chattels
Wasting Chattels Are Exempt From CGT, Unless:
A
- Used in a Trade; and
- Capital Allowances Have Been or Could Have Been Claimed.
5
Q
Non-Wasting Chattels
Where a Loss Arises to Which Sale Proceeds Did Not Exceed £6,000:
A
Gross Sale Proceeds Are Deemed to be £6,000.
(Loss Restricted)
6
Q
Non-Wasting Chattels
The 2 Computations Required in Calculating a Gain Are:
(Where Gross Proceeds > £6,000)
A
- The ‘Normal’ Method; and
- The ‘5/3rds Rule’.
The Lower is Then Charged.
