Reliefs

Question 1

Rollover relief

Answer 1

Applies on business assets - land buildings, goodwill. 1 year before or 3 years after acquire replacement asset.
acq cost - gain
can’t use AE

Question 2

Rollover on incorporation of business

Answer 2

sells interest
acq cost of new shares - gain
if doesnt transfer all assets, relief doesnt apply

Question 3

Holdover relief

Answer 3

only applies to gifts (assets, shares, interest) or if undervalue

Shares=unlisted, must be providing good and services
Assets=atleast 5% voting rights, assets used in business

Person who gets gift will pay any tax due

cant use AE

Question 4

Enterprise investment scheme

Answer 4

co. mustnt be listed, less than 250 ee, assets not exceeding 15m.
this defers gain until client disposes of new investment

Question 5

Private residence relief

Answer 5

wont have to pau CGT if can satisffy
1. only or main resi during period of ownership
2. hasnt been absent during period of ownership
3. grounds, gardens, buildings not greater than 0.5h and
4. no part of property has been used exclusively for business purposes during period of ownership

if cant satisfy = submit a resi property return + submit to HMRC + pay any CGT due in 60 days of when sale complete. transfer into joint names, then deduct CGT free allowance from their share of taxable gain

Question 6

Business asset disposal relief BADR

Answer 6

available on gains made on sale/gifts of business assets
reduces rate of tax payable by 10%, lifetime limit of 1m. e.g. sale of shares
own assets for 2y

Question 7

CGT

Answer 7

payable by an individual who disposes of a chargable asset and makes gain over period of ownership. e.g. shares

Question 8

Calculate CGT

Answer 8

deduct acq cost with any expenses from sale price. AE 12,300 can be applied. check if any disposals made in tax year