3 Flashcards by Lizzie Bevan

Flashcards in 3 Deck (11)

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Capital allowances: disposals

LOWER of: cost and proceeds

If one company sells another company...

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

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)

ER

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

IR

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

BPR

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

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

Gift relief qualifying assets

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

Tax evasion

deliberate suppression of information or provision of false info

Tax avoidance

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

Tax planning

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

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TC > 3 > Flashcards

Capital allowances: disposals

LOWER of: cost and proceeds

If one company sells another company...

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

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)

ER

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

IR

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

BPR

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

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

Gift relief qualifying assets

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

Tax evasion

deliberate suppression of information or provision of false info

Tax avoidance

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

Tax planning

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

Decks in TC Class (4):

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3 Flashcards Preview

TC > 3 > Flashcards

Capital allowances: disposals

LOWER of: cost and proceeds

If one company sells another company...

CGT, SSE:10%Trading co12m in last 6 years~ fully exempt

Gift relief

~ proceeds = MVGift of:1) asset used in business2) shares in unquoted (any%) or quoted (5%) trading Co~ restricted if hold investments (CBA/CA) or of actual consideration received (gain=consid-cost)

ER

CGT5%Trading co2yrs ownedWorked inTAX FIRST

IR

CGTSubscribed to new shares >Mar 16Trading coUnlistedNot workedThree years > Apri 16

BPR

IHTRelevant propertyOwnership (2yrs)Sales contractExpected assets~ Gift - [value x BPR% x (NA-inv)/NA]

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 yourself7yrs = let to tenants

Gift relief qualifying assets

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

Tax evasion

deliberate suppression of information or provision of false info

Tax avoidance

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

Tax planning

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

Key Links

Subjects

Company

Find Us

Brainscape's Knowledge Genome^TM

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

~ 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)

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

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

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

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

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