Chargeable gains Flashcards

1
Q

how do chargeable gains arise

A

if there is a chargeable disposal of a chargeable asset by a chargeable person

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2
Q

3 types of chargeable disposals

A

sale of asset
gift of asset
loss or destruction of asset

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3
Q

what are exempt disposals

A

transfers of assets on death

gifts to charities

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4
Q

10 exempt assets

A
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
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5
Q

what is the annual exempt amount for CGT

A

12000

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6
Q

what are gains taxed at in the basic rate band

A

10%

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7
Q

what are gains taxed at above the basic rate band

A

20%

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8
Q

what should the annual exempt amount be used on first

A

residential properties

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9
Q

what should chargeble losses be offset against

A

residential first

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10
Q

proforma for calculation of gains and losses

A

gross proceeds
(costs of disposal)

(cost)
(enhancement expenditure)

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11
Q

proforma for capital loss relief

A

gains
(current year losses)
(annual exemption of 12k)

(bought forward losses)

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12
Q

formula for part disposal of an asset

A

original cost of whole asset x A/(A+B)

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13
Q

What is A in the formula

A

MV of the part disposed of

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14
Q

whats B in the formula

A

MV of the remainder of the asset

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15
Q

how to calculate the gain on the part disposed

A

proceeds of part disposed - selling costs - ( original cost x A/(A+B))

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16
Q

Can you transfer your annual exemption of chargeable gains tax

A

no

17
Q

what basis is the transfer of assets between spouses

A

no gain or loss

18
Q

how do you treat a damaged asset

A

like a part disposal

19
Q

what is A in formula for damaged asset

A

compensation received

20
Q

what is B in the formula for a damaged asset

A

unrestored value of asset

21
Q

if you have never lived in the house, is it 10 and 20% or 18 and 28%

A

18% and 28% as its still a residential property