CGT Computation for Individuals

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Questions and Answers

The total amount received from selling an asset is known as the ______.

Disposal Proceeds

Costs related to the sale, such as legal fees or agent fees, are referred to as ______.

Incidental Costs of Disposal

The cost of acquiring the asset and any improvements made to it is known as ______.

Allowable Expenditure

Any capital losses from previous years or the same tax year that can be offset against the gain are called ______.

Capital Losses Signup and view all the answers

The CGT allowance that individuals can use to reduce their taxable gain is known as ______.

Annual Exemption Signup and view all the answers

The final amount on which CGT is calculated after all deductions is called ______.

Taxable Gains Signup and view all the answers

To remember the sequence of CGT computation for individuals, the mnemonic used is ______.

DIA-CAT Signup and view all the answers

Match the components of CGT computation with their descriptions:

Disposal Proceeds = The starting point of CGT computation Incidental Costs = Legal fees and costs related to asset sale Allowable Expenditure = The cost of acquiring the asset and improvements Annual Exemption = The allowable CGT deduction for individuals Signup and view all the answers

Match the terms related to CGT computation with their meanings:

Taxable Gains = Amount on which CGT is calculated Capital Losses = Losses from previous disposals that offset gains DIA-CAT = Mnemonic to remember the CGT computation sequence Legal Fees = Type of incidental costs subtracted from disposal proceeds Signup and view all the answers

Match the CGT computation steps with their order in the process:

D: Disposal Proceeds = 1st step in CGT calculation I: Incidental Costs = 2nd step, deducted after disposal proceeds C: Capital Losses = 4th step, deducted after allowable expenditure A: Annual Exemption = 5th step, allowance to reduce taxable gains Signup and view all the answers

Match the CGT aspects to their corresponding details:

Allowable Expenditure = Includes original cost and improvement costs Taxable Gains = Final amount after all deductions Disposal Proceeds = Total amount received from selling an asset Annual Exemption = Specific amount allowed as a deduction annually Signup and view all the answers

Match the definitions with the CGT terms:

Disposal Proceeds = Total amount received from the sale of an asset Incidental Costs = Costs like agent fees associated with the sale Allowable Expenditure = Costs for acquiring the asset Taxable Gains = Final calculated amount for CGT assessment Signup and view all the answers

Match the types of costs with their CGT computation role:

Incidental Costs = Subtracted from the disposal proceeds Capital Losses = Can offset taxable gains from previous years Allowable Expenditure = Deducted after incidental costs in computation Annual Exemption = Deduction that limits taxable gains annually Signup and view all the answers

Match the mnemonic components to their meanings in CGT:

D = Disposal Proceeds- starting point of CGT A = Annual Exemption- limit on taxable gains T = Taxable Gains- final amount for CGT computation C = Capital Losses- offset against taxable gains Signup and view all the answers

Match the steps of CGT computation with their correct sequence:

<ol> <li>Disposal Proceeds = Initial starting figure</li> <li>Incidental Costs = Costs deducted first</li> <li>Allowable Expenditure = Costs for acquiring and improving</li> <li>Taxable Gains = Amount after all deductions, subject to CGT</li> </ol> Signup and view all the answers

Match each CGT component with its definition:

Disposal Proceeds = The total amount received from selling an asset Allowable Expenditure = The cost of acquiring the asset and any improvements made to it Annual Exemption = The CGT allowance available to individuals Taxable Gains = The final amount on which CGT is calculated after deductions Signup and view all the answers

Match the deduction type with its explanation in CGT computation:

Incidental Costs = Costs related to the sale like legal fees Capital Losses = Losses from previous disposals that can offset gains Allowable Expenditure = Original cost of the asset plus improvements Annual Exemption = A fixed allowance to reduce taxable gains Signup and view all the answers

Match the terms of the CGT computation with their roles:

Disposal Proceeds = Starting point in the computation Capital Losses = Deductible losses to reduce taxable gains Annual Exemption = Amount individuals can deduct annually Taxable Gains = Final amount subject to CGT Signup and view all the answers

Match the mnemonic components to their meanings in CGT process:

D = Disposal Proceeds I = Incidental Costs C = Capital Losses A = Allowable Expenditure Signup and view all the answers

Match the elements of CGT deduction with their sequence:

Disposal Proceeds = First component considered Less Incidental Costs = Second component deducted Allowable Expenditure = Third step in the computation Taxable Gains = Final result after deductions Signup and view all the answers

Match each component of CGT computation with the adjustment it provides:

Incidental Costs = Reduced total from sale Allowable Expenditure = Offsets cost of acquisition Annual Exemption = Limits taxable gains amount Capital Losses = Reduces taxable gain from current or past Signup and view all the answers

Match the terms in CGT with their correct descriptions:

Disposal Proceeds = Total received from selling an asset Taxable Gains = Amount after deductions that is taxable Capital Losses = Offsetting losses to lower taxes Annual Exemption = Standard amount deducted from taxable gains Signup and view all the answers

Match the definitions related to CGT with the correct term:

Taxable Gains = Final calculation of CGT Allowable Expenditure = Costs linked to purchase or improvements Disposal Proceeds = Revenue from asset sale Incidental Costs = Expenses incurred in the sale process Signup and view all the answers

Study Notes