Chapter 22 - CGT - Reliefs for individuals Flashcards
What are the two non-business asset reliefs?
- Principle private residence relief
- Letting relief
What are the four business asset reliefs?
- Entrepreneurs relief
- Rollover relief
- Gift relief
- Investor relief
What is the calculation for Principle private residence relief?
Gain × (Periods of occupation/Total period of ownership)
What are the periods of deemed occupation?
a) Last 18 months of ownership always exempt
b) Up to 3 years absence for any reason
c) Any period spent living overseas due to employment
d) Up to 4 years of absence as a result of working elsewhere in the UK
What happens if a house is used for business use?
It loses the relief for that period.
What is letting relief?
The lowest of
40,000
Normal PPR exemption
The part of the gain in the letting period
How does ER relief work?
- First 10 mil taxed at 10%
- Amount above 10 mil taxed like normal
- Used against basic rate band before unqualifying gains
- 10% after deduction of allowable losses and AEA
By when must ER relief be claimed?
With 12 months of 31 January following the tax year
What does Investors relief apply to?
Unlisted ordinary shares in a trading company
For Investors relief to apply, when must the shares have been subscribed to?
On or after 17 march 2016
How long must shares have been held for IR?
3 years starting on 6 april
Who must hold the shares for IR relief?
Someone who is not an employee of the company.
What is the lifetime limit of IR?
10 mil
What are the qualifying assets for ROR?
Goodwill
Land and buildings
Fixed plant and machinery
What is the qualifying period for ROR?
Placement asset must be acquired within…
- One year before or
- three years after date of the sale of old asset
