Introductory guide to CGT
Introductory guide to CGT

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • Introductory guide to CGT
  • What is capital gains tax?
  • Chargeable assets
  • Scope of CGT
  • Chargeable assets
  • Disposals of UK real property by non UK residents
  • Disposals
  • Deemed disposals
  • Disposals to trustees
  • Death is not a disposal
  • More...

FORTHCOMING CHANGE: On 14 July 2020, the Office of Tax Simplification (OTS) published its online survey and a call for evidence to seek views about capital gains tax. The call for evidence comes in two sections: the first seeks high-level comments on the principles of CGT by 10 August 2020, while the second and primary section of the document invites more detailed comments on the technical detail and practical operation of CGT by 9 November 2020. Although the results of the survey and consultation are not yet known, it is worth bearing the proposals in mind when considering and advising on CGT.

What is capital gains tax?

When an individual disposes of an asset and makes a profit that is capital in nature, which is not subject to income tax or otherwise taxed, then this may be a taxable capital gain. A number of conditions may affect whether or not a charge to capital gains tax (CGT) arises:

  1. the asset, the disposal and the person making the disposal must all be of a type that can attract CGT

  2. the asset must be valued correctly for CGT purposes

  3. the ‘consideration minus costs’ calculation must result in a gain (see Practice Note: CGT—how to calculate a capital gain)

  4. an exemption or relief may apply

  5. there may be losses to set off against the gain

In the UK, a distinction

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