C Reliefs Flashcards
Conditions for rollover relief?
Must be a qualifying asset and used in a trade of the taxpayer
Reinvestment for rollover relief?
Must reinvest between 12 months before and 3 years after date of disposal of the old asset
When is complete rollover relief given?
When all proceeds < cost of new factory
Gain in depreciating asset is postponed until earliest of (disposal)
Disposal of new asset
Gain in depreciating asset is postponed until earliest of (ceases)
Date new asset ceases to be used in the trade
Gain in depreciating asset is postponed until earliest of (10 years)
10 years after the new asset was acquired
When fixed plant and machinery is sold for less than cost? (rollover relief)
It is not allowable
Chargeable business assets (gift holdover relief)
An asset used in a trade
Shares and securities
Claim for gift holdover relief time frame?
Must be made within 4 years of the end of tax year in which gift was made
Gift holdover relief proportion?
Only business use qualifies for the relief
CGT cost calculation (gift holdover)
Market value - held over gain
What happens to deemed cost (gift holdover)?
Added to holdover gain
When can a gain be held-over in fall?
All the company’s chargeable assets are the business assets
When proceeds £1250000 < reinvestment cost £1400000?
All relief is given
When proceeds £1250000 > reinvestment cost £650000
Do calculation. But if chargeable gain < reinvested, relief is 0
Business asset disposal relief abbreviation?
FTTW
F in business asset relief disposal?
Five%
T in business asset relief disposal?
Trading company and two-year ownership before disposal
W in business asset relief disposal?
Work there
Dos residential property qualify for BADR?
`No
When should AEA be first applied to?
What doesn’t qualigy for BADR
When a gain is less than <£1m
Qualifies for BADR
If taxable gain is less than £37700 in BADR worknig?
£37700 - taxable income - asset relief @ 10%
When does disposal of a house not qualify for a gain or loss?
When it is transferred between spouses
