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Flashcards in 3 Deck (11)
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1

Capital allowances: disposals

LOWER of: cost and proceeds

2

If one company sells another company...

CGT, SSE:
10%
Trading co
12m in last 6 years
~ fully exempt

3

Gift relief

~ proceeds = MV
Gift of:
1) asset used in business
2) shares in unquoted (any%) or quoted (5%) trading Co
~ restricted if hold investments (CBA/CA) or of actual consideration received (gain=consid-cost)

4

ER

CGT
5%
Trading co
2yrs owned
Worked in
TAX FIRST

5

IR

CGT
Subscribed to new shares >Mar 16
Trading co
Unlisted
Not worked
Three years > Apri 16

6

BPR

IHT
Relevant property
Ownership (2yrs)
Sales contract
Expected assets
~ Gift - [value x BPR% x (NA-inv)/NA]

7

APR

IHT
~ gift of a farm
~ MV-agricultural value = R
~ 100% relief on AV
~ can get BPR on R if renting out
~ Ownership: 2yrs = farm yourself
7yrs = let to tenants

8

Gift relief qualifying assets

~ asset = used in trade
~ quoted shares = any %
~ unquoted shares >5%

9

Tax evasion

deliberate suppression of information or provision of false info

10

Tax avoidance

legal, acting within the letter but not the spirit of the law

11

Tax planning

using straightforward tax rules to save tax e.g. ISAs