CGT Incorporation Relief

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  1. Avatar of Leila Leila says:
    March 28, 2013 at 12:12 pm

    How is the base cost of shares in answer key note (3) 200000? Is that the value at incorporation 160,000 + the 40,000 for stock transferred?
    I thought it would be 160,000.

  2. Avatar of Sakib Sakib says:
    June 7, 2012 at 5:26 pm

    In the initial example provided by the lecturer, 10% rate ER applied to gains on incorporation of £250k – by election to disapply Incorp’ Relief.

    Would the 10% ER not apply to the gain of £150k sale of the shares later on also ?

  3. Avatar of rogerdoger rogerdoger says:
    May 24, 2012 at 9:48 pm

    1. ER is available on the FULL gain i.e. 90k – as whole business is sold.

    2. Because March 1 is within 12 months – ER will not be available therefore CGT will be at 28%

  4. Avatar of nebojsha0603 nebojsha0603 says:
    May 17, 2012 at 6:12 pm

    Could you please help me understand in example 10, in case Mark chooses not to use incorporation relief but to apply for entrepreneurs relief on September 1st (no rollover), would he be entitled on full 90K entrepreneurs relief (10% tax rate) or just on 72K that qualifies for incorporation relief?
    On March 1st when final sales take place, would he be charged 28% on 350K – 200K – 10,600 in that case?
    Thanks!

  5. Avatar of sschaman sschaman says:
    May 11, 2012 at 6:12 pm

    very good i totally understand this i was very confused. thanks

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