CGT

  1. Is there a disposal or deemed of an asset?
  2. Proceeds? Base Cost
  3. Exclusions and Roll-overs of gain
  4. Excl and limitations for loss
  5. 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

click to edit

click to edit

Deemed Disposals
-Asset to inventory( CG and s11a)

  • Shares-optional
  • Inventory to asset----(Disposal s22(8), BC at s22(8) value)
  • Personal use to Bus use....No CGT on PUA, new BC=MV, Dispose MV
  • PUA----used .50% for pu

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

click to edit

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.