CGT Computation for Individuals

Podcast

Play an AI-generated podcast conversation about this lesson

Download our mobile app to listen on the go

Get App

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

Flashcards are hidden until you start studying

Study Notes