Chapter 12 CGT reliefs

Question 1

What is PPR relief

Answer 1

the relief an INDIVIDUAL gets on disposal of their residence for the period to which they have been deemed the occupant.

Question 2

What is the calculation of PPR relief

Answer 2

Gain on disposal x Periods of deemed or actual /total period of ownership

Question 3

Deemed period of ownership for PPR relief

Answer 3

• Last 9 months of ownership (if ownership>36 months)
• Up to 3 years for any reason, providing they return for any period
• Up to 4 years for working, must occupy before they go
• ANY period overseas for work
• 24 months where it is not possible to live there (being built, or repaired)

Question 4

What is roll over relief (traders/companies)

Answer 4

A deferral of payment on the gains of selling one asset, if the proceeds are used to buy another.

Question 5

What is the amount allowed for Roll over relief

Answer 5

Lower of:

• amount not reinvested
• The gain on disposal

*amounts should be apportioned for non business use… split costs and proceeds first.

Question 6

Gift relief is available on:

Answer 6

• Chargeable assets used in a business

- Shares in a trading company (minimum of 5% if incorporated)

Question 7

What does gift relief do (how does it work)

Answer 7

the gain is deferred and reduces the donee’s BASE COST

Question 8

What is the amount available for gift relief

Answer 8

• if no cash received = all gain

- If cash is given…Actual proceeds - allowable cost…

Question 9

what is the rate for qualifying Business Asset Disposal relief (BADR) assets

Answer 9

10%

Question 10

What qualifies for BADR?

Answer 10

• the whole or substantial part of trading incorporated business
• disposal of assets of incorporated business (if within 3 years) of ceasation
• Shares in trading company where the individual was employee

Question 11

What is gift relief available to

Answer 11

Chargeable business assets

Shares in a TRADING company

(>5% for quoted)