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Chapter 14 - Chattels and Principal Private Residence Exemption - Coggle…
Chapter 14 - Chattels and Principal Private Residence Exemption
Chattels: rule for computing gains/losses on non-wasting chattels
Original cost <6,000 and Proceeds <6,000: Wholly exempt
Original cost <6,000 and Proceeds >6,000: Gains restricted to 5/3 * (Proceeds - 6,000)
Original cost >6,000 and Proceeds <6,000: Deemed proceeds are 6,000
Original cost >6,000 and Proceeds >6,000: normal disposal
Wasting chattels
Life of disposal =< 50 yrs
Exempt from CGT
Exception: plant and machinery qualify for capital allowance
Sold for loss: no capital loss
Sold for gain: follow non-wasting chattels rule
PPR Exemption
PPR Exemption = Gains * period of occupation / period of ownership
Period of occupation
3 yrs: any reasons
Any period: Working overseas
Four years: Work elsewhere in the UK
Last 18 months always deem occupation
Gains not covered by PPR Exempt will be charged 18% or 28%, depends
Letting exemption
If part of tthe main residence is let out, a gain may arise
For residential lets, this gain may be covered by letting exemption which is the lowest of: 1. Gain arising in the period NOT cover by PPR 2. 40,000 3. PPR Exemption already given