06 May 2024
CGT
, 06 May 2024
Basics
·
a
It's wealth tax
·
Not separate tax
a
-> it's
part income tax take itinto account when taxable
of so we
calculating
income
↳ since it's deducted the calculation, it therefore lowers the
in
taxpayer'stax
rate (meaning reduced taxable income and
it therefore the amount
reducing
taxthe payer needs to
of
pay
CGT
has building blocks asset
·
4 -
->
disposal
-> base cost
-
proceeds
Purpose wealth accumulation)
·
-> ensure all income sources are fairlytaxed (prevents untaxed
-> broaden tax base (by taxing untaxed assets to revenue without
increase tax
En raising
this
rates
case,
on other income taxes)
disposed assets
·
CGTis applicable when an asset
is disposed atan
amount that's than
MORE the original cost
The Eighth Schedule deals with capital gains and losses from disposals
·
on or after 1 Oct 2008
·
1 Oct 2008 is called the valuation date and
any
date before
is called the
it pre-valuation date
·
Before calculate capital loss, must determine if the
first
we a
gain or we
disposal proceeds are revenue or capital in nature (we'll use the
court cases)
capital receipts and accruals
CGT
, 06 May 2024
Basics
·
a
It's wealth tax
·
Not separate tax
a
-> it's
part income tax take itinto account when taxable
of so we
calculating
income
↳ since it's deducted the calculation, it therefore lowers the
in
taxpayer'stax
rate (meaning reduced taxable income and
it therefore the amount
reducing
taxthe payer needs to
of
pay
CGT
has building blocks asset
·
4 -
->
disposal
-> base cost
-
proceeds
Purpose wealth accumulation)
·
-> ensure all income sources are fairlytaxed (prevents untaxed
-> broaden tax base (by taxing untaxed assets to revenue without
increase tax
En raising
this
rates
case,
on other income taxes)
disposed assets
·
CGTis applicable when an asset
is disposed atan
amount that's than
MORE the original cost
The Eighth Schedule deals with capital gains and losses from disposals
·
on or after 1 Oct 2008
·
1 Oct 2008 is called the valuation date and
any
date before
is called the
it pre-valuation date
·
Before calculate capital loss, must determine if the
first
we a
gain or we
disposal proceeds are revenue or capital in nature (we'll use the
court cases)
capital receipts and accruals
