CGT

When can gift relief be utilised?

On the disposal of business assets being sold to a connected person

When must gift relief claim be signed?

By both parties no later than 4 years after the end of the TY in which the transaction took place

When does BADR need to be claimed?

No later than the anniversary of the filing date for the TY to which the claim relates

Implications of an employee paying below MV for shares?

HMRC could argue on disposal that you are in receipt of employment income

What are the conditions for CGT treatment on company purchase of own shares?

Shares must be purchased by unquoted trading company to benefit its trade

Seller needs to substantially reduce interest in company

Seller must be UK resident

Seller must not be connected w the company post sale

Seller must have owned shares for 5 years prior to buy back (3 years if inherited)

When would a lump sum payment on resignation be tax free?

If it is compensation for loss of office which u aren’t entitled to and not expected and does not represent post-employment notice pay

What is a problem with directors receiving lump sump resignation payment?

HMRC may argue that directors could expect this payment given then are in positions to decide on the payment which would make it taxable.

When does the sale of rights qualify as small?

If less than 3,000 or

does not represent more than 5% of the value of the shares at rights issue

Do b/f losses come off before or after AEA?

After