Capital Gains Tax PIWM

Which of the following is a 'chargeable asset' for capital gains tax purposes?

• A taxpayer's home which is his main residence

• A taxpayer's holiday home

• Premium bonds

• A motor car

A taxpayer has a capital loss brought forward from the previous tax year of £2,000. In 2021/22 he has capital gains of £18,700 and allowable losses of £700. Taxable gains for 2021/22 are:

• £18,000

• £16,000

• £5,700

• £3,700

Which of the following is not allowable expenditure for CGT purposes?

• Repairs and maintenance expenditure

• Enhancement expenditure (eg improvements)

• Incidental costs of acquisition

In May 2021, Jane gifted an antique vase to the National History Museum. At the date of the gift the vase was valued at £9,000. The vase was acquired in November 2011 for £3,100. The capital gains tax position is:

• A chargeable gain of £5,900

• A chargeable gain of £9,000

• Exempt for capital gains tax

Linda bought a chargeable asset in June 1980 at a cost of £40,000. The asset had a market value of £48,000 on 31 March 1982. The asset was sold in May 2021 for £110,000. Disposal costs of £2,000 were incurred. The chargeable gain arising on the disposal is:

• £70,000

• £60,000

• £68,000

• £62,000

All shares acquired in a company by an individual are included in the s104 pool.

• True

• False

If an individual is offered a rights issue in relation to shares they own and chooses to take up the rights issue. The impact on the s104 holding is:

• Number of shares and allowable expenditure increases

• Number of shares increases but no impact on allowable expenditure

• No impact on either number of shares or allowable expenditure

Business asset disposal relief is currently available on gains up to a lifetime limit of:

• £1 million

• £10 million

• £5 million

• £2 million

Business asset disposal relief can only be claimed once during an individual's lifetime.

• True

• False

An individual disposing of shares in an unlisted trading company must be an officer or employee of the company in order to qualify for Investors' relief.

• True

• False