Commentary

A1.142 Capital gains—definition and taxation

Administration and compliance

A1.142 Capital gains—definition and taxation

Taxation of capital gains

A1.142 Capital gains—definition and taxation

Capital gains are defined as chargeable gains accruing to any person on any disposal of assets, and there are provisions as to persons who are chargeable or exempt, assets which are chargeable or exempt and events which are or are not to be treated as disposals1.

In general, the amount of a capital gain or loss is computed by taking the consideration received and deducting the costs of acquiring the asset and disposing of it, enhancing its value and protecting title to it, but there are special rules for various situations2.

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