The Policies And Taxation Assessment Of Recommending Spouses Into Business

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1.1 – INTRODUCTION
Under capital gain tax (CGT), property owners have enjoyed preferential tax treatment for decades, possibly with exemption allowed for residential relief as well as benevolent tax exclusions on imputed rental income for the owners and capital growth from the disposal of a primary residence. As stated, this lengthy essay has evolved examining the effects of these CGT policies and taxation assessment of recommending spouses into business, either for partnership or for employment purpose.
1.2 – AIMS & OBJECTIVES
The chapters that follow each focus on taxation aspect of residential CGT, Income Tax payable (ITP) and National Insurance Contributions (NICs) as illustrated below.

CHAPTER 2: SECTION A ANSWER

2.1 – THEORECTICAL BACKGROUND OF CAPITAL GAIN TAX RULES

In 1965, Capital Gain Tax (CGT) was first announced without undertaking tax purpose, which ultimately stimulate tax avoidance in term of converting taxable income into tax-free capital gains. Until the amendment of subsequent Finance Acts, CGT is considered for its tax implication after several improvements were made into the Taxation of Chargeable Gains Act 1992 between 1965 and 1982. Theoretically, CGT liability involves when chargeable asset is chargeable disposed by a chargeable person and only UK residence or ordinary UK residence are allowed for CGT. As a consolidation from removing major reliefs, any taper, indexation or inflation are no longer accounted which made the rules in some ways more

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