Capital Gains Tax
1. Name the three conditions to capital gains tax <Answer> -Chargeable
disposal
-Of a chargeable disposal
-By a chargeable person
2. Explain chargeable disposal <Answer> Should you sell, gift or transfer a
product to someone else you will pay CGT on the value of product whilst you
own it
3. Name two chargeable assets <Answer> Equity and holiday homes
4. Who is a chargeable person? <Answer> A UK resident
5. What is the annual CGT exemption? <Answer> £12,300
6. What is the basic CGT rate for a standard product and for a basic rate tax
payer? <Answer> 10%
7. What is the basic CGT rate for a residential property and for a basic rate tax
payer? <Answer> 18%
8. What is the basic CGT rate for a standard product and for a higher rate tax
payer? <Answer> 20%
9. What is the basic CGT rate for a residential property and for a higher rate
tax payer? <Answer> 28%
10. What is the lifetime limit of entrepreneurs relief that can be claimed?
<Answer> £1m
11. What is the taxation rate of entrepreneurs relief before they have exceeded
their limit? <Answer> 10%
12. What happens once a person has exceeded their entrepreneurs limit?
<Answer> -
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1. Name the three conditions to capital gains tax <Answer> -Chargeable
disposal
-Of a chargeable disposal
-By a chargeable person
2. Explain chargeable disposal <Answer> Should you sell, gift or transfer a
product to someone else you will pay CGT on the value of product whilst you
own it
3. Name two chargeable assets <Answer> Equity and holiday homes
4. Who is a chargeable person? <Answer> A UK resident
5. What is the annual CGT exemption? <Answer> £12,300
6. What is the basic CGT rate for a standard product and for a basic rate tax
payer? <Answer> 10%
7. What is the basic CGT rate for a residential property and for a basic rate tax
payer? <Answer> 18%
8. What is the basic CGT rate for a standard product and for a higher rate tax
payer? <Answer> 20%
9. What is the basic CGT rate for a residential property and for a higher rate
tax payer? <Answer> 28%
10. What is the lifetime limit of entrepreneurs relief that can be claimed?
<Answer> £1m
11. What is the taxation rate of entrepreneurs relief before they have exceeded
their limit? <Answer> 10%
12. What happens once a person has exceeded their entrepreneurs limit?
<Answer> -
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