CGT silly mistakes

Question 1

Part disposal

Answer 1

Cost * A / A + B

Question 2

Gift relief:
Shares in personal trading company

Answer 2

Gain is restricted to:

Total gain * CBA / CA

CBA = MV of Chargeable business assets
CA = MV of chargeable assets

Question 3

PRR - On main residence

Answer 3

Exemption = Gain x (Actual + deemed ownership) / Total ownership

Deemed:
last 9 months
Up to 3 years - any reason
Any period spent working abroad
Up to 4 years absence whilst working in UK

No PRR for business use

Question 4

Letting relief - applies when owner lets part of property WHILST STILL LIVING IN HOUSE

Answer 4

LOWER of:

£40,000
PRR given
Letting gain: Gain after PRR * (taxable occupation / Total chargeable months)

Question 5

Gift relief

Answer 5

On outright gift of asset / sale at undervalue (proceeds = MV)

Defer gain in qualifying asset

Assets used in business, unquoted trading shares, quoted shares of personal company (5% + voting rights)

Is ALWAYS balancing figure

Sale at undervalue - relief is restricted to proceeds in excess of original cost

Question 6

UK and O’seas gains:
Always set AEA and 10 /17% tax rate against UK gains in priority

Multiple UK gains:
Set AEA / capital losses b/f against higher CGT rate

Question 7

BADR qualifying assets

Answer 7

Held for 2 + years

All / part of unincorporated trading business
Assets of business within 3 years of ceasing to trade
Shares in personal trading company where individual is also an employee (owns 5+%)

Question 8

Investors relief qualifying assets

Answer 8

Unlisted ordinary shares bought after March 2016
Held for 3 + years
Not an employee

Question 9

Related property rules