Cgt Flashcards
Private residence relied periods of abscence
The last 9 months of ownership
Periods up to 3 years
Periods up to 4 years if either
- your employer requires you to work away from home
- distance of place of work prevents you from home
Investors relief, percentage and qualify if?
10%
They bought new shares for cash in an unlisted trading company
On or after March 17 2016
And held them continuously for 3 years
Business asset disposal relief
Applies to sale of a trading business as sole trader or shares in a company
Seller must have owned the business or shares for at least two years before the sale
Reduces rate to 10%
Lifetime allowance of 1 million
Incorporation relief
Applies when sole trader or partnership turns into limited business
Value of shares received at incorporation deducted from value of shares when they’re sold
Part disposal
A
——— x original cost
A + B
A is proceeds of part disposed
Loss made in the same tax year
Must be deducted from any gain BEFORE annual exemption
Previous carry forward losses CGT
Annual exemption is first offset against the gain
Then all or part of loss can be carried forward
When does payment of CGT need to be made
Due on 31st January following end of tax year the gain was made
Chattels relief
5/3x proceeds exceeding £6,000
Inter spousal transfers
Exempt from CGT
They must be married/civil partnership and have lived together at some point in the tax year of transfer
To qualify for PPR relief
House must be individuals main home
None of it has been let out
Grounds including all buildings are less than 5000 square meters
Chattels are exempt from CGT if?
They’re sold for less than £6,000
Business asset disposal relief rules if business is structured as a business and shares are being sold?
- seller must have at least 5% of the shares and voting rights and be entitled to either :
5% of the profits and assets available to equity holders
OR
5% of sale proceeds had the whole of the share capital had company been wound up
The seller is an employee or an office holder of company for at least 2 years
Lettings relief
Must calculate percentage of property that was let. I.e if 25% of £100k property let out, £25,000 subject to CGT
Max relief is £40,000
Deducted from total gain
Paying CGT on property disposal for main and secon
If residential property is sold/gifted on or affect 6 April 2020 owner must complete a Residential Property Return.
Tax must be paid within 30 days of completion
