Chattels

Question 1

what is a chattel

Answer 1

tangible moveable property

Question 2

what is the expected life of a chattel

Answer 2

more than 50 years

Question 3

what is the treatment of a chattel that originally cost less than 6000 and was sold for less than 6000

Answer 3

wholly exempt

Question 4

what is the treatment of a chattel that originally cost less than 6000 and was sold for more than 6000

Answer 4

gain is restricted to 5/3(gross proceeds - 6000)

Question 5

what is the treatment of a chattel that originally cost more than 6000 and was sold for less than 6000

Answer 5

gross proceeds deemed to be 6000 always

Question 6

what is the treatment of a chattel that originally cost more than 6000 and was sold for more than 6000

Answer 6

normal disposal

Question 7

how to do the full calculation of a chattel that cost less than 6k but was sold for more than 6k

Answer 7

calculate the usual gain (gross proceeds - cost of disposal - original cost)

then calculate 5/3 ( gross proceeds - 6000)

use the lowest figure

Question 8

what is a wasting asset

Answer 8

an asset that has an estimated useful life of 50 years or less

Question 9

how do you calculate the gain on a wasting asset

Answer 9

the straight line basis

Question 10

what is the PPR Exemption

Answer 10

principal private residence exemption

Question 11

how do you calculate the PPR

Answer 11

gain x (Period of occupation / period of ownership)

this then needs to be subtracted from the gain to calculate total gain

Question 12

what is the tax rate of charges of a gain that is not covered by PPR

Answer 12

18% AND 28%

Question 13

what periods of absence are deemed as occupation

Answer 13

any period which the owner was abroad for work

any period under 4 years where the owner was required to live elsewhere for work

any period not exceeding 3 years

Question 14

what is the letting exemption

Answer 14

the lowest of
gain arising in the letting period not covered by PPR
40000
PPR exemption already given