Restriction of gift relief and illustration
You'll learn how gift relief is restricted when a company holds non-trading assets, and how to calculate the maximum relief available. This technique is essential for ATX (Advanced Taxation) as it determines how much of a gain you can defer when gifting shares in a company with mixed asset types.
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In this lesson
- 0:00 Gift relief restriction overview
- 0:27 Identifying chargeable and business assets
- 0:52 Worked example: Shine Limited shares
- 2:01 Classifying assets for tax purposes
- 3:06 Calculating restricted gift relief
About this lesson
The video walks you through identifying chargeable and chargeable business assets from a balance sheet, then applies the restriction formula to a worked example, showing you exactly how to split the gain between deferrable and taxable portions.
Duration: 3m
Transcript
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