Illustration - small part disposals of land
You'll learn how to calculate chargeable gains on small part disposals of land and when to use the election available to defer tax.
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In this lesson
- 0:00 Small part disposal of land introduction
- 1:02 Calculating cost allocation using A over A plus B
- 1:28 Subsequent disposal and chargeable gain calculation
- 1:47 Small proceeds election eligibility criteria
- 2:27 Election impact on cost base and future gains
- 2:51 Strategic comparison with and without election
- 4:02 Annual exemption considerations and tax planning
About this lesson
This illustration walks through a practical scenario where land is sold in two stages, showing you the standard part disposal calculation, the conditions for claiming the small part disposal election, and how to evaluate whether deferring the gain is advantageous based on annual exemption availability. Understanding this technique is essential for Taxation (TX) and Advanced Taxation (ATX) papers, where disposal of land questions frequently appear and election decisions can significantly reduce your tax liability.
Duration: 5m
Transcript
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