Chargeable Gains for Companies (2) Flashcards
Index allowance for each asset calculation?
Relevant indexation factor * capital expenditure
Where does indexation factor apply to?
Acquisition cost and enhancement costs separately
What happens with unused indexation allowance?
Wasted
What can’t indexation allowance create?
Create or increase a loss
When is indexation allowance nill?
If RPI falls rather than increases between date of acquisition and date of disposal
Are capital gains chargeable to corporation tax?
Yes
When capital gains are netted off and the resultant future is a gain?
It is charged to corportation tax
When capital gains are netted off and the resultant future is a loss?
It is carried forward and set against future capital gains
When do capital losses only arise?
When net proceeds are less than allowable cost
Disposal of shares give rise to?
A chargeable gain or allowable loss
First order disposal of shares?
Shares acuired on same day
Second order disposal of shares?
Shares acquired in previous 9 days
Third order disposal of shares?
Shares contained within the share pool
What does a bonus issue do?
Increase number of shares with no corresponding increase in cost
What does a rights issue do?
Increase number of shares and cost
