13 Computation of gains and tax payable Flashcards Preview

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Flashcards in 13 Computation of gains and tax payable Deck (15)
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1
Q

Who is capital gains charged on?

A

Chargeable persons making chargeable disposals of chargeable assets.

2
Q

What are treated as chargeable disposals?(4)

A

1 Sale or gift of the whole or part on an asset
2 Exchange on an asset
3 Loss or total destruction of an asset
4 Receipts of a capital sum derived from an asset

3
Q

What are treated as exempt disposals?

A

Disposals as a result of the death of an individual and gifts to charities.

4
Q

What are some examples of chargeable assets?

A

Freehold land and buildings, goodwill, unquoted shares, certain chattels

5
Q

What are examples of exempt assets

A
Motor vehicles 
(including vintage cars)
•	Main residence
•	Cash
•	Certain types of chattels 
•	Investments held within an ISA
•	Qualifying corporate bonds (QCBs)
•	Gilt-edged securities
•	NS&I certificates
•	Foreign currency for private use
•	Receivables
•	Trading inventory
•	Prizes and betting winnings.
6
Q

How is disposal proceeds calculated?

A

Proceeds less selling costs

7
Q

When should market value be used?

A

When the deal was not made an arm’s length

8
Q

What are allowable expenditure for capital gains?

A

Cost of acquisition, expenditure to enhance, expenditure to establish, preserve or defend the title to the asset and incidental costs on the acquisitions of the asset

9
Q

When a asset is gifted, what is the disposal amount?

A

Market value at the date of the gift

10
Q

What is the annual exempt amount for capital gains?

A

£11,100

11
Q

What is meant by taxable gain?

A

Chargeable gains after deducting capital losses and the annual exempt amount.

12
Q

What is the basic rate tax percentage for CGT?

A

10%

13
Q

What is the tax percentage for any gains over basic rate for CGT?

A

20%

14
Q

What is the residential property CGT rates?

A

18% and 28%

15
Q

When is CGT payable?

A

31st January