Capital gains tax 13/14
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| First line of a capital gains tax computations | Proceeds
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| What might you substitute instead of money received for a capital gain if the transaction was not at "arms length" | Market value
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| What is the formula for working out the cost in a part-disposal? | A/A+B where A is the proceeds from the part sold and B is the market value of the remainder.
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| What can you deduct from sales proceeds in a CGT computation? | Sales expenses
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| What is the order for matching shares? | Shares bought on the same day, shares bought in the next 30 days, shares in the FA1985 pool.
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| What is the formula used when selling an asset for just over £6,000? | Calculate gain as normal. Compare with 5/3(proceeds - £6,000). Take the lower.
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| The last four years of ownership of a property are deemed occupation. True or false? | False, 3 years.
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| How many years absence are you allowed as deemed occupation for working abroad for PPR purposes? | Any amount
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| How many years are you allowed as deemed occupation when working away from home for PPR purposes? | 4 years
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| What is the formula for calculating exempt amount for PPR? | Period of occupation (as PPR)/Period of ownership
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| How many years at the end of ownership are you allowed as PPR whether or not you are living in the property? | 3 years for any reason.
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| What is the rule when you make a loss and you have sold an asset for less than £6,000? | Substitute £6,000 as proceeds
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| What is the date for payment of CGT? | 31 January following the end of the tax year ie 31/1/15
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| Can you include improvement expenditure in the cost of an asset? | Yes, provided the improvement is still there at the time of sale.
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| What can you deduct from sale proceeds in a CGT computation? | Selling expenses, expenses of purchase, improvement expenditure, cost of asset and indexation (if relevant)
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| An asset with a life of less than 40 years is a wasting asset. True or false? | False, it's 50 years.
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| What are the % for taxing capital gains | 18% and 28%
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| What is the annual exemption for 13/14 | £10,900
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| You must use current year losses against current year gains. True or false? | True
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| You can skip brought forward losses forward a year if you choose to. True or false? | True but only if you have used some of the losses against current year gains to bring the gains down to the annual exemption
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| Losses brought forward can be carried forward indefinitely. True or false | True. If you are constantly making losses then these can be carried forward, but if you make a gain above the annual exemption then you must use the losses.
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| Gains on selling gilts are exempt from CGT. True or false? | True
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