Capital Gains Tax Flashcards
(4 cards)
1
Q
when is CGT payable?
A
CGT payable where an individual makes a gain unless private residence relief is applicable
2
Q
how do you calculate a gain?
A
Calculation: sale price – expenditure (inc. initial purchase price) = gain
3
Q
when will PRR be applicable?
A
o It is the main/only residence +
o They have occupied throughout ownership (not inc. last 9m)
4
Q
what can PRR be applied and not applied to?
A
o Home (can choose which property if more than 1 owned) +
o 0.5 hectares of land (more if can prove necessary for reasonable enjoyment)
o No part of the property used for business
Can be used by trustees if B occupies property as main residence
