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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Question of the week: Where a trust of a life policy otherwise falls within the definition of an 'excluded trust' set out in paragraph 4 of Schedule 3A of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, does it lose that excluded trust status if it opens a non-interest bearing bank account in order to pay insurance premiums for the policy?

This Q&A considers whether a trust of a life policy, which otherwise falls within the definition of an 'excluded trust' as set out in the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, Sch 3A, para 4 loses its excluded trust status if it opens a non-interest bearing bank account to pay insurance premiums for the policy.

Tax update spring 2025—Tax analysis

Tax analysis: On 28 April 2025, the government announced a package of technical tax policy proposals aimed at simplifying and reforming the tax system and improving tax administration. These announcements included the publication of draft legislation, new consultations, various technical papers and responses to consultations, as well as updates on previously announced measures together with new initiatives.

Sizeable refunds could follow taxpayer’s FTT win as HMRC directed to issue enquiry closure notices in ten-year dispute (Refinitiv Ltd v HMRC)

Tax analysis: In Refinitiv Ltd v HMRC, the First-tier Tax Tribunal (FTT) directed that HMRC issue closure notices in respect of enquiries into 2018 corporation tax returns, averring that it had not met the burden of proof required for the enquiries to be kept open.

High Court makes order regarding funeral arrangements where two executors disagree (Patel v Patel)

Private Client analysis: The High Court has resolved a dispute between two executors over the funeral arrangements for their father, a devout Hindu. In a sensible and sensitive decision which reviewed and applied settled principles, the judge (HHJ Paul Matthews) considered the various factors which favoured cremation in England over burial in India. These included the wishes of the deceased, the views of his family, the strength of his connections to the UK and India, and practicalities such as cost and delay. While the relevant factors and their relative weight will inevitably be fact-sensitive, similar factors are likely to recur in many such cases. What is clear is that no single factor (in particular, the deceased’s own wishes) will necessarily be conclusive, so that the court must weigh all relevant factors with care. Written by Kyle Bonnell, barrister at XXIV Old Buildings.

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