General CGT Flashcards
(16 cards)
Add top sliced gain to income to work out CGT for calculation purposes
CGT on UK property account, payable 30 days after gain realised
CGT- when ASSET sold date of disposal is date contract becomes binding not date funds received
Disposals between spouses exempt in year of disposal
Tax tower
Capital gain
Dividend income
Savings income
Earned income
Personal savings allowance
0% first £5k. Not available if NS taxable income over £5k
PPR exempt part of gain
Total gain/ period of occupation div by total period of ownership
Gain × Period of occupation of property/ total Period of ownership
PPR exemptions
Up to 1 yr between purchase and move in Last 9 months of ownership Period pre 1/4/82 Period of living in job related accomodation Period working abroad 4 years where impractical
Lower of £40k or exemption on part occupied by owner
PPR steps
Determine DISPOSAL proceeds Deduct ACQUISITION cost or value 31/3/82 Deduct TRANSACTION costs Offset CAPITAL losses Deduct ANNUAL exemption DEDUCT correct rate of TAX
Land partial sale
A_
A+B x original cost
A is proceeds of part disposed of abd B is market value of part retained
Losses from same year
Offset in full, below level of ann exemption
Carry forward only sufficient loss in given year to reduce level of gain to annual exemption
Holdover relief
Reduces base cost for donee by amount of gain ‘held over’ which in turn increases size of any gain on future disposal by donee
No CGT payable at time of gift
Donor and donee claim together
CGT not avoided, transfers to donee and charged when asset disposed of
Disposal of trading assets and some company shares qualify
CGt exempt
Life ass policy Non wasting chattels Damages and compensation Government bonds and gilts Personal currency Personal main resi Decorations for valour in hands of original owner Gambling wins Govt bonds and gilts
Chattels relief- when disposal proceeds exceed £6000
PPR
Relief only available to Jack as he was in shared occupation with his tenant
Carry forward
