809. Computation: general principles.

Although the Taxation of Chargeable Gains Act 1992 does not spell this out in terms1, the first step in calculating the gain or loss2 on a disposal is to take the consideration received on the disposal and deduct3 from it the cost of the asset, together with any incidental costs of acquisition or disposal and additional capital expenditure incurred on the asset during the period of ownership. There are rules for determining both the consideration for the disposal4 of an asset and the allowable deductions5 to be taken into account in computing the gain6. Except in cases where an