Capital gains tax planning with quoted shares (UK Finance Act 2014)

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. Which of the following will not avoid CGT?

  2. What will be achieved by making sufficient disposals each tax year so that chargeable gains are at least GBP11,000?

  3. What will be achieved by delaying a disposal from 15 March 2015 to 15 April 2015?

  4. An investor sells quoted shares for GBP80,000 that had originally cost GBP15,000. 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?

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

  6. If both spouses are higher rate taxpayers, what is the potential CGT that a married couple can save for 2014-15 by having shareholdings in joint names rather than in just the name of one spouse?

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

  8. In which of the following circumstances will the share matching rules be applied?

  9. For 2014-15 an investor has chargeable gains of GBP14,000 and unused capital losses brought forward from previous tax years of GBP8,000. What amount of capital losses are carried forward to 2015-16?

  10. For 2014-15 an investor already has chargeable gains of GBP9,000 and capital losses of GBP6,000. What would be the most beneficial strategy for the investor?