click below

click below

Normal Size Small Size show me how

# Capital gains tax

### Capital gains tax 13/14

Question | Answer |
---|---|

First line of a capital gains tax computations | Proceeds |

What might you substitute instead of money received for a capital gain if the transaction was not at "arms length" | Market value |

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. |

What can you deduct from sales proceeds in a CGT computation? | Sales expenses |

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. |

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. |

The last four years of ownership of a property are deemed occupation. True or false? | False, 3 years. |

How many years absence are you allowed as deemed occupation for working abroad for PPR purposes? | Any amount |

How many years are you allowed as deemed occupation when working away from home for PPR purposes? | 4 years |

What is the formula for calculating exempt amount for PPR? | Period of occupation (as PPR)/Period of ownership |

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. |

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 |

What is the date for payment of CGT? | 31 January following the end of the tax year ie 31/1/15 |

Can you include improvement expenditure in the cost of an asset? | Yes, provided the improvement is still there at the time of sale. |

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) |

An asset with a life of less than 40 years is a wasting asset. True or false? | False, it's 50 years. |

What are the % for taxing capital gains | 18% and 28% |

What is the annual exemption for 13/14 | £10,900 |

You must use current year losses against current year gains. True or false? | True |

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 |

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. |

Gains on selling gilts are exempt from CGT. True or false? | True |