Chargeable gains for individuals

Question 1

What is the annual exempt amount for chargeable gain for individuals?

Answer 1

£12,300

Question 2

At what rates are chargeable gains taxed?

Answer 2

Unused Basic rate band: 10%

Anything else: 20%

Question 3

When is capital gains tax payable?

Answer 3

31st of January

expect UK residential property disposal

Question 4

What is the CGT on residential property?

Answer 4

Unused Basic rate band: 18%

Anything else: 28%

Question 5

What value is used for CGT for assets transferred between Spouses?

Answer 5

acquisition cost

Question 6

What value is used for CGT for assets transferred between connected persons?

Answer 6

Market value at the time of the transaction

Question 7

Who counts as ‘connected persons’ for CGT purposes? (4)

Answer 7

1) Spouse / civil partner
2) Relatives
3) Spouse / Civil Partner Parents
4) Business partners and their spouses / civil partners and parents

Question 8

What is a Chattel for CGT purposes?

Answer 8

A chattel is an item of tangible movable property

• Can be classified as wasting or non-wasting

Question 9

What is a wasting chattel?

Answer 9

A wasting chattel has a life of no more than 50 years

• Exempt from CGT

Question 10

What is a non-wasting chattel?

Answer 10

A life of greeter than 50 years

• Only exempt if they are bought and sold for less than £6,000

Question 11

What are the matching rules for the sale of shares?

Answer 11

1) Share acquired on the same day as disposal
2) Shares acquired within the following 30 days of disposal on a FIFO basis
3) s104 shares bought prior to the disposal date