An in-depth exploration of how business assets are treated under capital gains tax, specifically in relation to entrepreneurs' relief and the historical context of taper relief.
A Capital Expense is any expenditure made by a business to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. These expenses are typically substantial and offer a long-term benefit.
A company car is a vehicle owned by a business but made available for employees to use for business and, in some cases, personal purposes.
A distribution to owners represents the transfer of assets from a business to its shareholders or owners, often observed as dividends in the USA.
Entrepreneurs' Relief (ER) is a tax relief scheme introduced on April 6, 2008, in the UK, offering a reduced rate of Capital Gains Tax (CGT) on disposals of qualifying business assets, effectively encouraging entrepreneurial activities.
A floating charge is a security interest over a pool of changing assets of a business, which ‘floats’ until it crystallizes and attaches to specific assets of the company.
Intangible value represents non-physical assets that have a significant impact on an entity's worth, such as goodwill, brand recognition, and intellectual properties like trademarks and patents.
In taxation, listed property refers to assets such as automobiles, computers, and cellular phones that are subject to a 50% business use test. Depreciation methods for these assets vary based on their usage for business purposes.
The recapture of depreciation is a tax provision that allows the IRS to tax the portion of gains on the sale of property that represents 'excess' depreciation.
Resources include money, people, time, and equipment necessary for any organization. Resource allocation is a key part of a manager's decisional roles.
Rollover relief allows businesses to defer capital gains tax or corporation tax when proceeds from a disposable asset are reinvested, thus potentially increasing any gains from future asset disposals.
Section 1231 of the Internal Revenue Code deals with assets used in a trade or business, providing for capital gains treatment on gains and ordinary loss treatment on losses from such assets.
