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F6 Taxation B&B and capital gains

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  • 01-06-2013 4:58pm
    #1
    hockeygirl
    Registered Users Posts: 166 ✭✭


    Hi folks
    I'm siting the f6 exam on Monday and I'm missing some notes on CGT particularly the note on Bed And Breakfast.

    Can anyone help me out? Just a brief description thanks.

    I've googled it but just not getting a good explanation.

    Thanks!!


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    #2
    100200 shih
    Registered Users Posts: 169 ✭✭100200 shih


    Bed & Breakfast Transactions- 1

    - To ‘realise’ a loss, without actually disposing of the
    shares, a person could sell their shares, claim the loss
    which had accrued, and then buy the shares back.
    - To avoid this happening, where shares are
    purchased within 4 weeks of a disposal of shares of
    the same kind and same class,
    then any loss incurred on the disposal can only be set
    against a gain on those same shares (and not against
    other shares or assets)


    Anti-Avoidance Provisions
    Bed & Breakfast Transactions-2
    - A similar rule applies where shares of a certain kind are
    sold within four weeks of share of the same kind having
    been purchased.
    - Where this happens the usual FIFO rules do NOT apply
    and the disposal is deemed to have been made out of
    the newer shares, LIFO rules applies
    - No restriction on use of losses


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    #3
    hockeygirl
    Registered Users Posts: 166 ✭✭hockeygirl


    100200 shih wrote: »
    Bed & Breakfast Transactions- 1

    - To ‘realise’ a loss, without actually disposing of the
    shares, a person could sell their shares, claim the loss
    which had accrued, and then buy the shares back.
    - To avoid this happening, where shares are
    purchased within 4 weeks of a disposal of shares of
    the same kind and same class,
    then any loss incurred on the disposal can only be set
    against a gain on those same shares (and not against
    other shares or assets)


    Anti-Avoidance Provisions
    Bed & Breakfast Transactions-2
    - A similar rule applies where shares of a certain kind are
    sold within four weeks of share of the same kind having
    been purchased.
    - Where this happens the usual FIFO rules do NOT apply
    and the disposal is deemed to have been made out of
    the newer shares, LIFO rules applies
    - No restriction on use of losses

    Thank you so much!!! Lifesaver :)


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    #4
    Nellsbells
    Registered Users Posts: 62 ✭✭Nellsbells


    hockeygirl wrote: »
    Thank you so much!!! Lifesaver :)

    Well what did Ye think of f6 ? I didn't think it was a nice paper at all


  • Options
    #5
    hockeygirl
    Registered Users Posts: 166 ✭✭hockeygirl


    Nellsbells wrote: »
    Well what did Ye think of f6 ? I didn't think it was a nice paper at all

    Ughhh wasn't overly happy myself tbh.
    Vat question and residency questions were good. I didn't know the first bit of the car theory and Couldn't remember the exact number of days for the residency question
    Cgt was half ok. I could t do the main calculation so I skipped ahead and finshed the test.
    Corporation tax i wasnt sure of the implications of the connected company.. ran out of time for the second half of the question for the other company.
    Farmers for income tax arghhhhh three that question together. All in all I'd say a big fat fail
    :(


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