Bloomsbury Professional Capital Gains Tax 2021/22

Description

Preface Table of examples Table of statutes Table of statutory instruments and other guidance Table of cases List of abbreviations Chapter 1 Introduction to capital gains tax Signposts What is chargeable as a gain History of CGT Who is chargeable to CGT Exempt assets or gains The capital gains tax calculation Reporting of gains Self-assessment procedures Payment of tax Compliance assurance and penalties Chapter 2 Disposals Signposts Definition of assets and disposals When asset value is lost Compensation and other receipts Special situations Chapter 3 Computation of gains and losses Signposts Computational rules Consideration for the disposal Connected persons Delayed or deferred consideration Allowable expenditure Calculation and use of losses Deduction of reliefs Chapter 4 Particular assets Signposts Shares and securities Options and deposits Chattels Wasting assets Finance arrangements Assets appropriated to or from trading stock Chapter 5 Foreign issues Signposts Introduction Basis of the charge to CGT Foreign assets Location of assets Territorial limits of CGT Residence and ordinary residence prior to 6 April 2013 – the old law Statutory residence test to determine residence from 6 April 2013 – the current rule Non-residents doing business in the UK Anti-avoidance: temporary non-residence Foreign assets of non-UK domiciled taxpayers Apportionment of non-resident company’s gains Double tax relief Offshore (non-UK resident) settlements Penalty regime Increased penalties to tackle offshore tax evasion New criminal offence of failing to declare offshore income/gains Compliance disclosure opportunity – ‘requirement to correct’ Extension of offshore limits Chapter 6 Partnerships Signposts How CGT applies to partnerships Partnership assets and ‘other’ assets Disposal of partnership assets Change in fractional share of assets Limited liability partnerships HMRC Statement of Practice D12 Chapter 7 Administration of an estate Signposts Introduction Capital gains tax in the period to the date of death Capital gains tax in the administration of an estate Legatee or beneficiary Main residence relief Deeds of appointment, variations or disclaimers Sales by legatees Chapter 8 Capital gains tax – settlements Signposts Introduction Definition of ‘settlement’ and ‘settled property’ The creation of a settlement Actual and deemed disposals by trustees Disposal of interests in settled property Sub-fund elections Rates of tax Particular transactions affecting trusts Exemptions and reliefs Main residence relief and trustees Main residence relief, trusts and hold-over of gain under TCGA 1992, s 260 Settlor-interested settlements Residence of trust Trusts for vulnerable and disabled persons Compliance Chapter 9 Companies Signposts Basis of charge Rebasing Indexation allowance Capital losses Identification of shares Groups of companies Relief on disposal of shares Chapter 10 Land and property Signposts Outline Treatment of land transactions Part disposals of land Leases of land Residential property Furnished holiday lettings Non-resident CGT Annual tax on enveloped dwellings (ATED) Profits taxed as income Chapter 11 Main residence relief Signposts Scope of the relief What constitutes a residence? Other uses of a residence Extent of the property Periods of occupation Two or more residences Divorce and separation Chapter 12 Business asset disposal relief (formerly entrepreneurs’ relief) Signposts Introduction Operation of the relief Claiming the relief Shareholders Sole traders Partners Trustees Post-cessation disposals Associated disposals Deferred gains Interaction with other reliefs Chapter 13 Hold-over relief for gifts Signposts Forms of hold-over relief Gifts of business assets Operation of TCGA 1992, s 165 relief Special situations When relief is denied Gifts subject to IHT (TCGA 1992, s 260) Where relief is denied or clawed back Claims and valuations Chapter 14 Roll-over relief for business assets Signposts Overview of roll-over relief Conditions Period for reinvestment Qualifying activities Asset classes Use of assets Operation of the relief Depreciating assets Claims Interaction with other reliefs Chapter 15 Incorporation of a business Signposts Overview Effect of the relief The conditions Election to forgo incorporation relief Computing the relief Interaction with other reliefs Chapter 16 Venture capital reliefs Signposts Four venture capital reliefs Seed Enterprise Investment Scheme EIS disposal relief EIS share identification rules EIS deferral relief How to claim EIS deferral relief What happens when the conditions are broken Interaction with other reliefs When EIS relief is withdrawn or clawed back Venture capital trusts Social investment tax relief Chapter 17 Investors’ relief Signposts Overview Company conditions Investor conditions Share conditions Share reorganisations Claiming the relief Chapter 18 Other reliefs Signposts Employee-ownership trusts Employee shareholder status Loans to traders Share loss relief Gifts to the nation Chapter 19 Tax planning versus tax avoidance Signposts Tax planning Tax avoidance Basic tax planning Anti-avoidance rules Disclosure of tax avoidance schemes Index