CH1 CGT Fundamentals Flashcards
CGT SM Chapter 1 Example 2, CGT QB Q1.4.
1
Q
Is death an occasion of charge for CGT?
A
No; The person who is left the assets of the deceased will inherit the assets with a base cost equal to the market value at the date of death.
This is known as the probate value.
2
Q
Do companies pay CGT on chargeable gains?
A
No. The company will instead pay corporation tax on its gain.
3
Q
The annual exempt amount is deducted to find taxable gains and is ?
A
£6,000 in 2023/24.
4
Q
Transfer between spouses and civil partners are at ?
A
no gain, no loss.
5
Q
A gift to a charity is also deemed to take place at ?
A
no gain, no loss.
6
Q
What impacts the rate of CGT an individual will pay?
A
The level of an individual’s taxable income and the nature of the asset.
7
Q
The main exempt assets are: ?
A
- Cars
- Shares in ISAs & VCTs
- Wasting Chattels
- Chattels which are bought & sold for < £6,000.
