SQE1 · topic drill
Property Practice drill
Freehold and leasehold transactions from investigation of title to completion, commercial leases, security of tenure and property taxation.
35questions in the bank
20per sitting, shuffled
—untimed
The answer and explanation appear after each question. Each sitting draws a fresh 20 from the bank, so run it again for new ones.
What is in this drill
Scope: FLK2, Chapter 8: Property Practice
A sample question
Iris is selling the house she has lived in as her only home throughout her ownership. The house stands in a garden of about a quarter of a hectare. She will make a large gain on the sale. Assume that main residence relief covers garden and grounds of up to half a hectare. What is the capital gains tax position?
- The gain is exempt, as the house was her only or main residence throughout
- The gain is fully taxable, as main residence relief applies only to flats
- Only the part of the gain relating to the house is exempt; the garden is taxed
- The gain is exempt only if she buys another home within three years
- The gain is taxable, but at half the normal capital gains tax rate
Marked when you take the drill; the explanation appears in your review.