QUESTION 1

Referring to the law, provide an answer to each of the following questions:

(i) What is the definition of a CGT asset?

(ii) CGT assets are divided into three categories. What are they and why is it important to correctly classify each asset?

(iii) What is the definition of a ‘collectable’ asset?

(iv) Where an item is defined as a collectable asset, what are the four specific rules which apply to that asset?

(v) What is the definition of a ‘personal use asset’?  

(vi) Where an item is defined as a personal use asset, what are the four specific rules which apply to that asset?