CGT Reliefs

Question 1

PPR - deemed occupation

Answer 1

The last 18 months if the property has been PPR at some time. Even if the individual has another PPR during this period.

The following only count if no other PPR

• Any period (or periods added together) of up to three years (36 months) absence for any reason.
• Any periods of absence during which the individual was required by his employment to live abroad
• Any period (or periods added together) of up to four years during which the individual was required to live elsewhere due to his work so he could not occupy the property.

The periods of absence must usually be preceded by a period of actual occupation and followed by actual occupation. However, not required to resume residence in last two situations if terms of employment require him to work elsewhere or disabled / care home.

Question 2

PRR - calc

Answer 2

Total gain * occupation / total period owned

Question 3

PRR letting relief

Answer 3

If a property was let out during the term, a PRR letting relief may be availible for the time it didn’t qualify for PRR. Calculated as lowest of
PRR
Letting Gain
40k

but only if the owner was living there too

Question 4

Rollover relief - concept

Answer 4

• must be qualifying business assets
• new asset must be 1 year before or 3 years after disposal
• claim must be made within 4 years of end of tax year when gain realised or new asset bought

Question 5

Rollover relief - calculation

Answer 5

1) calculate gain

2) proceeds less amount reinvested = amount taxed now.

Question 6

Rollover relief - non-business use

Answer 6

relief only availible on business element of gain.

technique; have two seperate columns

Question 7

Gift relief concept

Answer 7

Normally a gift of chargable asset is a chargable disposal and a gain calculated where the proceeds are treated as the market value of the asset.
but a claim may be made by the donar for the gain arising on a disposal on a business asset.

Question 8

Qualifying asset for GIFT RELIEF

Answer 8

Assets used in business carried on by the donor or by the donor’s personal company (a company in which the donor has at least 5% of the voting rights) or
- shares or securities in a trading company where either the shares are unquoted or the company is the donor’s personal company

A joint election must be made and signed by both the donor and the donee within four years after the end of the tax year of the gift.

Question 9

restriction on gift relief

Answer 9

think shares! so if the trading company has chargable non-business assets on the BS (e/g shares in another company or investment property) - restrict the relief amount by:
MV of chargable businsses assets (CBA)
—————————————————-
MV of chargable assets (CA)

triggers for gift relief restriction on shares are the question giving info on the assets held by the trading company.

Question 10

BADR

Answer 10

rate of 10% on certain disposals of busiess assets

Question 11

Investors relief

Answer 11

shares which were subscribed for, shares in limited company, and worked for 3 years there.
Put in seperate column and do tax at 10 %