Chargeable Gains for Individuals

Section A: Objective Test Alistair sold an antique vase (a non-wasting chattel) for £7,200 in December 2023. He had purchased the vase at an auction in 2015 for £4,000. What is the chargeable gain on the disposal of the vase before any annual exempt amount?

Section A: Objective Test Sarah sold her only home in March 2024, having owned it for exactly 10 years (120 months). She lived in it for the first 2 years, then was required by her employer to work abroad for 4 years. She then returned and lived in the house for 1 year, before moving out to live with her partner for the final 3 years until it was sold. How many months of ownership will qualify for Principal Private Residence (PPR) relief?

Section B: Case 1 - Vanguard Robotics Scenario: Vanguard Robotics was run as a sole trade by Liam, developing specialized robotic arms for manufacturing. Liam prepared accounts to 31 December each year. On 30 September 2023, Liam ceased trading as a sole trader and transferred the entire business as a going concern to a newly formed company, Vanguard Robotics Ltd, in exchange for shares. Question: On incorporation, Liam transferred chargeable assets with a market value of £400,000 (original cost £150,000). The total market value of all business assets transferred was £600,000. In exchange, Vanguard Robotics Ltd issued 10,000 £1 ordinary shares to Liam (market value £500,000) and paid him £100,000 in cash. What is the base cost of Liam's shares in Vanguard Robotics Ltd after applying Incorporation Relief (s.162)?

Section B: Case 1 - Vanguard Robotics Scenario: Vanguard Robotics was run as a sole trade by Liam, developing specialized robotic arms for manufacturing. Liam prepared accounts to 31 December each year. On 30 September 2023, Liam ceased trading as a sole trader and transferred the entire business as a going concern to a newly formed company, Vanguard Robotics Ltd, in exchange for shares. Question: If Liam chose to disapply Incorporation Relief (s.162) and instead jointly elected for Gift Relief (s.165) on the transfer of a specific factory building to the company, what would be the immediate CGT consequence for Liam regarding the cash consideration received?

Section A Elena sold an antique weaving loom (a tangible movable property) for £6,500. She had originally purchased it at an auction for £3,000. What is Elena's chargeable gain on the disposal of the loom, before any annual exempt amount?

Section A Which of the following conditions is NOT required for an individual to qualify for Business Asset Disposal Relief (BADR) on the disposal of shares in a company?

Section A David gifted shares in his personal trading company to his son, Leo. The shares had a market value of £100,000 and originally cost David £20,000. David and Leo jointly elect for Gift Hold-over Relief (Business Asset Gift Relief). What is Leo's base cost for the shares for Capital Gains Tax purposes?

Section B - Case 3 (Oakfield Farms) Before his death, Arthur sold a farmhouse that he had lived in for 10 years. For the entire 10 years, he used one room (representing 10% of the house) exclusively as a farm office. How will Principal Private Residence (PPR) relief apply to the capital gain on the sale of the farmhouse?

Section A Jonah, a retired deep-sea welder, sold an antique diving helmet (a non-wasting chattel) for £7,200 in December 2023. He had originally purchased it for £3,000. What is the chargeable gain on the disposal of the diving helmet?

Section A Fiona owned a house for 10 years (120 months) before selling it. She lived in it as her main residence for the first 4 years (48 months). She then worked abroad for 3 years (36 months). Upon returning, she lived in a rented flat for 2 years (24 months) while the house remained empty, before finally moving back into the house for the last 1 year (12 months). How many months of ownership will qualify for Principal Private Residence (PPR) relief?

Section B - Case 1: Quantum Aquatics Zara and Felix run 'Quantum Aquatics', a partnership specializing in hydro-electric turbine maintenance. They share profits in the ratio 3:2. The partnership has always prepared accounts to 31 December. On 30 September 2023, Felix retired, and Zara continued as a sole trader. The partnership's tax adjusted trading profit for the 9-month period to 30 September 2023 was £90,000. Upon retirement, Felix sold his share of a specialized maintenance boat (a partnership asset) to Zara. The boat was originally purchased for £50,000 and the market value of the whole boat at the date of Felix's retirement was £80,000. What is Felix's chargeable gain on the disposal of his share of the boat?

Section B - Case 1: Quantum Aquatics Zara and Felix run 'Quantum Aquatics', a partnership specializing in hydro-electric turbine maintenance. They share profits in the ratio 3:2. The partnership has always prepared accounts to 31 December. On 30 September 2023, Felix retired, and Zara continued as a sole trader. The partnership's tax adjusted trading profit for the 9-month period to 30 September 2023 was £90,000. Felix wishes to claim Business Asset Disposal Relief (BADR) on the disposal of his partnership interest. Which of the following conditions MUST be met for his disposal to qualify for BADR?

Section A Helena sold two assets during the tax year: an antique clock for £7,500 (cost £3,000) and a racehorse for £12,000 (cost £5,000). Both are tangible movable property. What is Helena's total chargeable gain before the annual exempt amount?

Section A Julian operates a manufacturing business as a sole trader. He decides to scale down his operations and sells 40% of his factory machinery. He continues to run the business at a reduced capacity. Does this disposal qualify for Business Asset Disposal Relief (BADR)?

Section A Victor realized a capital gain of £50,000 on the sale of a buy-to-let property. He wishes to defer this gain by investing in Enterprise Investment Scheme (EIS) shares. What is the time limit for making the EIS reinvestment to qualify for CGT deferral relief?

Section B - Case 2: Bramble Farms Arthur owns Bramble Farms, a working agricultural estate. He decides to gift the entire estate to his daughter, Beatrice, during his lifetime. The estate includes agricultural land, a farmhouse occupied by Arthur, and various farm machinery. Arthur realizes a capital gain on the gift of the agricultural land to Beatrice. Can Arthur and Beatrice jointly elect for CGT Gift Hold-Over Relief?

Section A: Objective Test Julian sold an antique clock (a non-wasting chattel) for £7,200 in December 2023. He had originally purchased it for £3,000. What is the chargeable gain on the disposal of the antique clock?

Section A: Objective Test Sarah bought a house on 1 January 2014 and lived in it as her main residence until 31 December 2017. She then worked abroad for an international NGO until 31 December 2021. During this time, the house was left empty. She returned and lived in the house until she sold it on 31 December 2023. For how many months will Principal Private Residence (PPR) relief be available?

Section A: Objective Test To qualify for Business Asset Disposal Relief (BADR) on the disposal of shares in a personal company, an individual must meet certain conditions. For how long must these conditions be met immediately prior to the date of disposal?

Section B: Case 3 - SteelForge Partners Scenario: SteelForge Partners is a partnership manufacturing specialized alloys. On 1 May 2023, the partnership sold its old factory for £800,000, realizing a chargeable gain of £150,000. On 1 October 2023, they purchased a new factory for £700,000. Question: Assuming a claim for Rollover Relief is made, what is the base cost of the new factory for Capital Gains Tax purposes?

Section B: Case 3 - SteelForge Partners Scenario: SteelForge Partners is a partnership manufacturing specialized alloys. On 1 May 2023, the partnership sold its old factory for £800,000, realizing a chargeable gain of £150,000. On 1 October 2023, they purchased a new factory for £700,000. Question: One of the partners, Liam, gifted his 20% share in the partnership to his daughter, Chloe, on 1 December 2023. The market value of the share was £200,000 and Liam's original cost was £50,000. They jointly elect for Gift Hold-Over Relief. What is Chloe's base cost for the partnership share?

Section B: Case 3 - SteelForge Partners Scenario: SteelForge Partners is a partnership manufacturing specialized alloys. On 1 May 2023, the partnership sold its old factory for £800,000, realizing a chargeable gain of £150,000. On 1 October 2023, they purchased a new factory for £700,000. Question: The partnership also sold a piece of heavy machinery for £40,000. It originally cost £60,000. Capital allowances of £60,000 had been claimed on it. What is the chargeable gain or allowable loss on the disposal of this machinery for CGT purposes?

Section B: Case 3 - SteelForge Partners Scenario: SteelForge Partners is a partnership manufacturing specialized alloys. On 1 May 2023, the partnership sold its old factory for £800,000, realizing a chargeable gain of £150,000. On 1 October 2023, they purchased a new factory for £700,000. Question: Another partner, Sarah, sold her entire 30% share in the partnership to an external buyer, realizing a gain of £1,200,000. She has never previously claimed Business Asset Disposal Relief (BADR). Assuming all qualifying conditions are met, what is the Capital Gains Tax payable by Sarah on this disposal? (Assume she has used her annual exempt amount elsewhere and is a higher rate taxpayer).

An antique clock (a non-wasting chattel) was purchased for £3,000 and sold for £7,200. What is the chargeable gain before any annual exempt amount?

Which of the following periods of absence does NOT automatically qualify as a deemed period of occupation for Principal Private Residence (PPR) relief, assuming the individual returns to live in the house afterwards?

SCENARIO: Arthur, aged 65, has run GreenMeadows Farm as a sole trader for 30 years. On 1 May 2023, he sold a barn used for storage for £150,000, realizing a gain of £80,000. He immediately reinvested £100,000 into a new combine harvester. On 1 June 2023, he gifted 10,000 unquoted shares in a farming supply company to his daughter, generating a chargeable gain of £40,000. Arthur sadly passed away on 1 December 2023. His estate included the farmhouse, which he occupied for agricultural purposes. QUESTION: Does the sale of the barn qualify for Business Asset Disposal Relief (BADR)?

SCENARIO: Arthur, aged 65, has run GreenMeadows Farm as a sole trader for 30 years. On 1 May 2023, he sold a barn used for storage for £150,000, realizing a gain of £80,000. He immediately reinvested £100,000 into a new combine harvester. On 1 June 2023, he gifted 10,000 unquoted shares in a farming supply company to his daughter, generating a chargeable gain of £40,000. Arthur sadly passed away on 1 December 2023. His estate included the farmhouse, which he occupied for agricultural purposes. QUESTION: What is the maximum rollover relief Arthur can claim on the sale of the barn, given his reinvestment in the combine harvester?

SCENARIO: Arthur, aged 65, has run GreenMeadows Farm as a sole trader for 30 years. On 1 May 2023, he sold a barn used for storage for £150,000, realizing a gain of £80,000. He immediately reinvested £100,000 into a new combine harvester. On 1 June 2023, he gifted 10,000 unquoted shares in a farming supply company to his daughter, generating a chargeable gain of £40,000. Arthur sadly passed away on 1 December 2023. His estate included the farmhouse, which he occupied for agricultural purposes. QUESTION: Can Arthur and his daughter jointly elect for Gift Hold-Over Relief on the transfer of the unquoted shares?