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Chargeable transfer |
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Chargeable transferA gift or other transfer of value made by an individual which is not covered by any of the various exemptions and which is therefore a transfer for inheritance tax purposes.Similar MatchesChargeable eventChargeable eventA transaction which leads to a chargeable gain and which in turn promotes the issuing of a chargeable event certificate. For example the sale of an investment bond with a life company which results in a gain will be classed as a chargeable event. Chargeable gainChargeable gainThe amount chargeable to capital gains tax (CGT) from gains made on the disposal of an asset. In the case of stocks and shares, your gain is the difference between the proceeds of selling the shares and the amount you paid for them adjusted for indexationIn calculating the acquisition cost, you can include including broker commissions and stamp duty. Depending on when you bought the shares, the base cost can be increased through the indexation allowance - a good thing from a tax point of view because the higher your acquisition cost, the lower your chargeable gain.In calculating the disposal proceeds, you can deduct commissions and other charges incurred in the process of selling.Whether you have to pay Capital Gains Tax on the chargeable gain will depend on whether you have already used up your annual exemption (the amount of gains you can make in any one year without paying CGT), and on the level of your other gains or losses in the tax year.Taper relief, which reduces the rate of tax you pay on gains, may also be available, depending on how long you have held the shares at the time you sell them. Chargeable event certificateChargeable event certificateA certificate issued on the occurrence of a chargeable event. Details listed include the amount of the gain, number of years over which the gain has occurred, the date the transaction took place and that the certificate should be sent to the Tax Office to establish if a higher rate tax liability exists. Proceeds are free from basic rate tax liability. |
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