CGT Revision Notes Flashcards
(20 cards)
what are the capital reliefs applicable to CGT?
- replacement of business asset relief (rollover/holdover)
- gift relief
- BADR
- investor’s relief
- PRR
qualifying assets for replacement of business asset relief?
- goodwill
- land & buildings
- plant & machinery
- ships/aircraft
- satellites/space stations
when must an asset be purchased to qualify for rollover/holdover relief?
between:
- 1yr before sale of old asset
- 3yrs after sale of old asset
when must rollover/holdover relief be claimed?
later of:
- 4yrs after end of tax yr
- 4yrs after asset was acquired
does a lease apply to holdover/rollover relief?
holdover, as it’s deemed ‘depreciating’ (>60yrs useful life)
when is a gain deferred till under holdover relief?
earliest of
- disposal of the asset
- acquisition of the new asset
- the date the asset ceases to be used in trade
what is eligible for gift relief?
- assets used in donor’s trade
- donor’s personal company
- unquoted shares
- quoted shares
when is CA/CBA used?
when gift relief asset is shares in the donor’s personal company
which assets are applicable for BADR?
- all/large parts of an unincorporated trading business
- assets of a business within 3yrs of ceasing to trade
- shares in a personal trading company, where individual is an employee/officer
when must BADR be claimed?
within 12m from 31jan following tax year in which disposal occurred
are gifts to charity eligible for CGT?
no
what does investors’ relief apply to?
- unlisted shares in a trading company
- held for a minimum of 3yrs
- by individual who isn’t an employee
- own 5%, but not an employee
letting relief amount?
lowest of:
- 40,000
- PRR given
- gain after PRR * (chargeable months due to letting/total chargeable months)
how does notional gain work?
two gains arise:
- notional gain: MV on date of dilution - actual cost = gain (10%)
- second gain: actual proceeds less MV on date of dilution = gain (10%/20%)
both gains are only taxed when actual disposal occurs
what was AEA before 24/25?
6,000
is the sale of personal trading business applicable for any relief?
yes BADR
are friends ‘connected persons’ for CGT?
no
only family, spouse, business partner etc
how are shares valued for CGT?
LQP+(1/2*(HQP-LQP))
how is CGT handled for connected persons?
losses to connected persons are not relieved against gains
only offset against gains made on disposals to the SAME PERSON
how are gains handled when some are o/s and some are uk?
- separate the o/s and uk gains
- allocate the allowances/losses to the uk gains
- calculate/deduct DTR
