Capital gains in the exam 1 / 1

Capital gains tax in the exam

Tips for the exam

Below are a few tips for the exam!

Good luck!!

  • Make sure you identify any exempt disposals so that you do not waste time performing unnecessary calculations.

  • An unincorporated business is not treated as a separate entity for CGT purposes. Therefore, when a business is disposed of you should deal with each asset separately.

  • Do not forget to deduct the annual exempt amount if it is available.

  • When dealing with shares it is important to look carefully at the dates to see if same day or 30-day matching is applicable.

  • It is important to establish how much of a person’s basic rate tax band is available. Remember that a taxable income figure is after the personal allowance has been deducted.