CGT

Question 1

Chargeable person / not
Individuals

Answer 1

Chargeable

Question 2

Chargeable person / not
Business partners treated as owning share of partnership assets

Answer 2

Chargeable

Question 3

Chargeable person / not
Trustees

Answer 3

Chargeable

Question 4

Chargeable person / not
Companies paying CT on gains

Answer 4

Chargeable person

Question 5

Chargeable person / not
Registered charities using gains for charitable purposes

Answer 5

Exempt CGT

Question 6

Chargeable person / not
Friendly societies

Answer 6

Exempt

Question 7

Chargeable person / not
Local authorities

Answer 7

Exempt

Question 8

Chargeable person / not
Registered pension schemes

Answer 8

Exempt

Question 9

Chargeable person / not
Investment trusts

Answer 9

Exempt

Question 10

Chargeable person / not
Approved scientific research associations

Answer 10

Exempt

Question 11

Chargeable disposal/not
Sale of whole/part asset

Answer 11

Chargeable

Question 12

Chargeable disposal/not
Gift of whole/part asset

Answer 12

Chargeable

Question 13

Chargeable disposal/not
Receipts of capital sums on surrender of rights over asset

Answer 13

Chargeable

Question 14

Chargeable disposal/not
Loss/destruction of whole/part of asset

Answer 14

Chargeable

Question 15

Chargeable disposal/not
Appropriation of assets as trading stock

Answer 15

Chargeable

Question 16

Chargeable disposal/not
Asset appropriated into trading stock

Answer 16

Disposal of asset at market value - elect to be treated as gain or loss and cost adjusted for gain / loss that would have occured

Question 17

Chargeable disposal/not
Gift to charities

Answer 17

Exempt

Question 18

Chargeable disposal/not
Gift to art galleries/museum

Answer 18

Exempt (if used for purposes of institution)

Question 19

Chargeable asset/not
Tangible (land furniture art)

Answer 19

Chargeable

Question 20

Chargeable asset/not
Intangible (goodwill, shares, crypto, leases)

Answer 20

Chargeable

Question 21

Chargeable asset/not
Legal tender (cash)

Answer 21

Exempt

Question 22

Chargeable asset/not
Motor cars (inc vintage and classic)

Answer 22

Exempt

Question 23

Chargeable asset/not
Medals awarded for valour if person disposing did not acquire for money

Answer 23

Exempt - if did acquire for money non-wasting chattle rules

Question 24

Chargeable asset/not
Wasting chattels except assets used in business where owner has/could have claimed CA

Answer 24

Exempt

Question 25

Chargeable asset/not Chattels non-wasting or used in business if sold at gain for consideration < 6000

Answer 25

Exempt

Question 26

Chargeable asset/not Gilt-edged securities

Answer 26

Exempt

Question 27

Chargeable asset/not Qualifying corporate bonds

Answer 27

exempt

Question 28

Chargeable asset/not NSI & premium bonds

Answer 28

Exempt

Question 29

Chargeable asset/not Shares and investments in ISA

Answer 29

Exempt

Question 30

Chattel

Answer 30

Item of tangible moveable property, specifically excluding goodwill, shares and leasees

Question 31

Wasting chattel

Answer 31

Chattel with predictable life at date of disposal < 50 years. Include caravans, boats computer and animals (P&M

Question 32

non-wasting chattel

Answer 32

Predictable life at date of disposal of more than 50y

Question 33

Qualifying corporate bond is defined as

Answer 33

sterling denominated, non-convertible, loan stock representing normal commercial loan, interest upon which is neither excessive, nor dependent on business performance

Question 34

CGT - Allowable costs

Answer 34

acquisition cost incidental cost of acquisition (legal fees etc) Enhancement expenditure

Question 35

Part disposal cost

Answer 35

Cost * MV part disposed / (MV disposed+MV retained)

Question 36

Annual exempt amount for CGT

Answer 36

12300

Question 37

If losses bought forward these are set against

Answer 37

First available net gains after deduction of CY losses and AEA

Question 38

Under s64 trading loss relief can be set against

Answer 38

Chargeable gains for CY and PY (CYCB), claim made against general income before gains in same year

Question 39

Amount of S261B loss (CYCB) is lower of

Answer 39

- unrelieved trading loss - CY gains - CY losses and capital losses bought forward

Question 40

When is CGT due

Answer 40

31 January following tax year of disposal

Question 41

When can GCT be paid by instalments

Answer 41

When CGT arises as result of a gift of land or shares in a company out of a controlling holding, or. any number of shares in an unquoted company.

Question 42

When paid in instalments, CGT is due

Answer 42

10 yearly instalments starting 31 January after end of tax year gain arose, provided election made in writing to HMRC, interest will be charge

Question 43

Payment of CGT on disposal of UK rental property

Answer 43

UK land return and payment on account due within 60 days of completion

Question 44

Who is an individual connected with

Answer 44

Spouse Relatives and their spouses Spouses relatives and their spouses Business partners and their spouses/relatives

Question 45

Connected - trustee of a settlement

Answer 45

Connected with the trust settlor and anyone connected with the settlor. connected from start of trust.

Question 46

A disposal to a connected person is always deemed

Answer 46

to be made at MV at the date of disposal

Question 47

Loss incurred on disposal to a connected person can only be offset against

Answer 47

Gains made on disposal to the same connected person in same or future tax years

Question 48

Disposals of shares are matched against acquisitions of the same class in what order

Answer 48

- same date - following 30 days FIFO - any shares in s104

Question 49

What to do with bonus issue

Answer 49

Bonus shares deemed to have been acquired on same date as original shares bonus issues attach pro rata to s104 at nil cost

Question 50

What to do with rights issue

Answer 50

Deemed to have been acquired on same date as original shares to which they relate attach pro rata to s104 pool, number of shares added and cost of rights shares increases cost

Question 51

Valuing quoted shares

Answer 51

Lower quoted price + 0.5*(higher quoted price - lower quoted price)