Everyone is allowed a tax-free amount for all their chargeable gains
for the tax year, which is currently Au11,700 (Dh55,670).
Provided the deed is executed within two years of your aunt's death, and quotes s142 of the Inheritance Tax Act 1984 and s62 of the Taxation of Chargeable Gains
Act 1992, then for the sake of Inheritance Tax and Capital Gains tax, the gift will be treated as though your aunt left the money directly to your children.
HMRC added, "Gains and losses incurred on Bitcoin or other cryptocurrencies are chargeable or allowable for Capital Gains Tax if they accrue to an individual or, for Corporation Tax on chargeable gains
if they accrue to a company."
Briefly, the executors of Lord Howard's estate put forward the argument that they owed no capital gains tax on the proceeds of the sale on the counter-intuitive basis that the painting was technically a 'wasting asset', and therefore not chargeable under the Taxation of Chargeable Gains
Act 1992 (the 'Act').
Fine wine investment is often advertised as a 'tax-free investment' due to it being exempt from capital gains tax as it is deemed a wasting asset 'whose predictable life does not exceed more than 50 years' (Section 44(1) Taxation of Chargeable Gains
In the current tax year there is an exempt amount of PS10,600 for chargeable gains
and this will be lost if it is not used.
Additional topics covered include self-assessment, trading profits, loan relationships, capital allowances, loss relief, intangible fixed assets, group chargeable gains
According to the budget statement, "Legislation will be introduced in Finance Bill 2009 to provide relief from the provisions of SDLT and the Taxation of Chargeable Gains
Act 1992 for persons wishing to raise finance by using land assets in the United Kingdom.
By section 100 of that Act, the double taxation provisions of the Income and Corporation Taxes Act 1970 (ICTA) applicable to corporation tax in respect of income 'shall apply also to corporation tax in respect of chargeable gains
Such caution is understandable as companies (or groups) that switch to the UK-REIT regime will not pay corporation tax on qualifying rental income or on qualifying chargeable gains
. Against that, the REITs will be required to distribute 95% of net taxable profits on rental income to investors and of course they will pay tax on that.
Investment firms benefit from preferential tax treatment, such as exemptions from tax on income and chargeable gains
. If applied to enterprises not classed as investment companies, such as CDC, these benefits would be considered unfair state aid.
Q I am acting as personal representative following the death of my uncle, and for the year ended 5 April 2002 estate assets were sold on which total chargeable gains
of pounds 18,000 were made.