CGT question cheatsheet

Question 1

If the question includes details on the value of assets, what is this a clue of?

Answer 1

Gift relief. Calculate the chargeable business assets and total assets.

Use formula for GR:
Total Gain x (CBA/CA)

CBA- assets used in trade over £6000 (no investments)
CA- MV of all assets

Question 2

If the question gave detail on the usage of a residential home, what do you do?

Answer 2

Apply PRR and letting relief if applicable

calculate occupied period and non occupied period using rule of 3

gain x exempt/total = PRR

Question 3

If CGT question includes gifts and value of shares per ownership, what should you do?

Answer 3

Use nominal value x shares to get cost
use shares transferred to calc % and work out proceeds

difference = gain

Calc gift relief= Gain x CBA/CA

chargeable business assets

Question 4

How do you pay CGT in instalments

Answer 4

10 yearly equal installments starting on normal due date on land/shares

Question 5

What is BPR

Answer 5

Business property relief

100% on unincorporated business/shares and shares on unquoted companies

50% shares from controlling holding in quotes company or NCA for business purposes by trading company of which transferor had control of

Question 6

When is RNRB nil

Answer 6

when death estate greater than £2.35m