Reliefs Flashcards
(13 cards)
BPR 1
Transfer of relevant business assets
Held for 2 years
Not in agreement to sell.
For transfers on lifetime to qualify on death:
Still held
Still used for business
BPR 2
Relevant business assets:
100% relief
Unincorporated trading business
Interest in unincorporated trad.
Shares in unquoted trading comp
Shares in trading company on AIM
50% relief:
Shares from 50% shareholding in PLC
Land, buildings, P+M owned by deceased and rented to business
BPR 3
Ownership periods flexible
Joint with spouse
If death in between
If replaced
BPR 4
Excepted assets:
BPR not available on excepted assets.
Not used wholly for business purposes and not needed in future for business.
Net Assets - EA / NA
Gift relief 1
Only business assets:
Assets: used in transferors business.
Shares:
LTD, allowed
PLC, at least 5% shareholding
Gift relief 2
Only available on chargeable business assets.
Chargeable for capital gains.
CBA/CA
Gift relief, claim
Joint claim made within four years of end of TY transfer made.
BADR
10% first 1 million
Qualifying:
All of LTD or division. (Each separately and sum/net of)
Selling business assets within 3 years of ceasing.
LTD or PLC shares if
- 5% holding
- employee
If shareholding diluted to below 5%
Notional gain.
Charge when actually sold.
Value when notional gain is the new cost.
Investors relief
10 million at 10%
Qualifying:
Unlisted shares, LTD only.
SUBSCRIBED FOR
Held for 3 years
(NOT EMPLOYEE OR 5%)
PRR
No gain on disposal of Principal private residence if occupied throughout ownership
Their main dwelling
One per couple.
Elect between properties:
Within 2 years of marriage or purchase
PPR
Deemed occupation
Last 9 months if they have lived there at some point.
Up to 3 years any reason
Any period spent working abroad.
Up to 4 years working in UK
can’t have another principal private residence
Can let out when not occupying.
For the last three, have to move back in after.
PPR
Non residential use
If there is some business use of the property, apportion the amounts between business and residence.
Can claim last 9 months if started all residential.
If was always business, can’t claim last 9 months.
Letting relief.
Rent part of the property whilst they still live there.
Family members don’t count.
Owner must still live there.
Relief is the LOWER of:
£40,000
PRR given
The part of the gain after the PRR has been deducted that relates to the rented period.
I.e. rented out 30 months out of total period of 50 months of no occupation. Then the remaining gain is multiplied by 30/50.
