| Commentary

21.3 Calculating the tax

| Commentary

21.3 Calculating the tax

Where the rules contained in the capital gains tax legislation are applied to an individual disposal, they will normally produce either a gain or a loss1. As a taxpayer is charged to capital gains tax on the net gains of the whole tax year, the gain on any particular disposal must then be aggregated with the gains or losses arising on all other chargeable disposals in that year2.

If the result is a net gain, the taxpayer may then deduct his annual exemption for that tax year3. If there is still a gain, then this will

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