Chargeable gains Flashcards
how do chargeable gains arise
if there is a chargeable disposal of a chargeable asset by a chargeable person
3 types of chargeable disposals
sale of asset
gift of asset
loss or destruction of asset
what are exempt disposals
transfers of assets on death
gifts to charities
10 exempt assets
cars uk government stocks qualifying corporate bonds wasting chattels currency for personal use medals awarded for valour or inherited gold sovereigns minted after 1837 national savings certificates and premium bonds gambling winnings inventory and other current assets investments held in ISAs
what is the annual exempt amount for CGT
12000
what are gains taxed at in the basic rate band
10%
what are gains taxed at above the basic rate band
20%
what should the annual exempt amount be used on first
residential properties
what should chargeble losses be offset against
residential first
proforma for calculation of gains and losses
gross proceeds
(costs of disposal)
(cost)
(enhancement expenditure)
proforma for capital loss relief
gains
(current year losses)
(annual exemption of 12k)
(bought forward losses)
formula for part disposal of an asset
original cost of whole asset x A/(A+B)
What is A in the formula
MV of the part disposed of
whats B in the formula
MV of the remainder of the asset
how to calculate the gain on the part disposed
proceeds of part disposed - selling costs - ( original cost x A/(A+B))
Can you transfer your annual exemption of chargeable gains tax
no
what basis is the transfer of assets between spouses
no gain or loss
how do you treat a damaged asset
like a part disposal
what is A in formula for damaged asset
compensation received
what is B in the formula for a damaged asset
unrestored value of asset
if you have never lived in the house, is it 10 and 20% or 18 and 28%
18% and 28% as its still a residential property
