CGT - Introduction to Capital Gains Tax Flashcards
1
Q
Chargeable Person
What do Companies Pay on Gains?
A
Corporation Tax.
2
Q
Chargeable Disposal
A ‘Disposal’ for CGT Purposes Includes:
A
- Selling an Asset;
- Gifts;
- Loss or Destruction of an Asset.
3
Q
Chargeable Disposal
How Are Assets Inherited on Death?
A
The Base Cost is Uplifted to Market Value.
‘Probate Value’.
4
Q
Chargeable Assets
Most Property is an ‘Asset’ for CGT Purposes, Apart From?
A
Cash in Sterling.
5
Q
Calculation of CGT
The Rate of CGT Charged Depends on:
A
- The Individual’s Taxable Income; and
- The Nature of The Asset Being Disposed.
6
Q
Calculation of CGT
Gains are Taxed at Either:
A
- 10% (For Any Unused Basic Rate Band);
- 20%.
7
Q
Calculation of CGT
The ‘Unused Basic Rate Band’ is:
A
The Basic Rate Band Remaining After an Individual’s Income is Taxed.
Excluding Assessable Transitional Profits.
