Capital gains tax planning with quoted shares (UK Finance Act 2015)

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. What will be achieved by making sufficient share disposals each tax year so that chargeable gains are at least £11,100?

  2. In which of the following circumstances will the share bed and breakfasting matching rules be applied?

  3. For 2015-16, an investor already has chargeable gains of £9,100 and capital losses of £6,000. What is the most beneficial strategy for the investor?

  4. Which of the following will not avoid CGT?

  5. If a married couple are both higher rate taxpayers, what is the potential CGT that they could save for 2015-16 by having shareholdings in joint names rather than in just the name of one spouse?

  6. What will be achieved by delaying a share disposal from 15 March 2016 to 15 April 2016?

  7. For 2015-16, an investor has chargeable gains of £14,000 and unused capital losses brought forward from previous tax years of £8,000. What amount of capital losses are carried forward to 2016-17?

  8. Which of the following will never increase the amount of available basic rate tax band?

  9. Which of the following transactions will effectively bed and breakfast the shares concerned?

  10. An investor sells shares for £80,000 which had originally cost £15,000. In order to defer the entire chargeable gain, what is the minimum investment that will have to be made in shares qualifying for the enterprise investment scheme?

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