CGT
- Is there a disposal or deemed of an asset?
- Proceeds? Base Cost
- Exclusions and Roll-overs of gain
- Excl and limitations for loss
- In current YOA
- Aggregate gain/ lossmeans 40k excl has been taken into account
- Disposal def---creation and example is ROT, the receiver of the pmt is giving up the right to trade.
- s19 and par12A link to disposals.
- ONLY optional conversion of shares triggers CGT
- Compulsory conversion-----base cost &date of old shares remain BC of new shares
- Change in use as a deemed disposal----- VAT. Is there a change in use ito Vat??
- Issuing shares is not a disposal but selling shares you held is a disposal
Scope
- Assets
- Disposal
- Residents(wwa)
-Non-residents(3)---link WHT and DTAs
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PROCCEDS
- Inclusions(3)---slide 28(recoupment, par35)
- S24M---defer until quantified---do calc and ring-fence loss(par 39A)
- Accruing over a period of time--Ring fence loss unless.....
- S24M does not override case law
- Its is the nominal actual amount not the PV
BASE COST
- s8(5) recoup incl
- leasehold improvements(lessor)(net incl)
- excluded costs
- Donations tax paid by donor ---incl in BC of the one who paid it
- Onus on TP to deter BC
- Cost not allowed as a deduction will form part oft he BC
TIMING OF DISPOSAL
- Date of disposal = date of aquisition for acquiree
- Suspensive conditions
- scrapping loss and destruction --full comp received, No consideration??Later of 1.discovery or no moeny will be received
- Deferred delivery(when agreement is concl)
- Date of conversion(shares)
Annual exclusion and ACL
- Rates
- Position of CGT on FM
- Only applies to G/L from current year
- not appl to assessed losses but on the diff between GG & GL
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ACL Brought forward
- You do not lose it, carried forward indefinetly--despite not trading for a year
Capital Loss(par4)--mirror of par 3
Capital Gain(par 3)---- cancelling a sale that led to a capital loss, recovery of base cost, receipt of proceeds not accounted for prev.