Capital gains tax

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The charge to CGT

The charge to CGT arises when a person disposes of an asset and makes a profit on the disposal that is capital in nature. For an overview of CGT as a whole (including its scope, reliefs and compliance), see Practice Note: Introductory guide to CGT. See also: Capital gains tax—client guide.

When deciding whether a charge to CGT arises, there are a number of aspects to consider.

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

CGT is payable by individuals, trustees and personal representatives (PRs). Companies generally do not pay CGT but are subject to corporation tax on their chargeable capital gains (although see below in respect of CGT payable on disposals of UK residential property owned by non-natural persons prior to 6 April 2019). In the context of UK real property and separately in relation to individuals who are deemed domiciled in the UK for CGT purposes on or after 6 April 2017, a person may be within the scope of CGT even where they are not UK resident

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