Commentary

C1.103 Capital gains—chargeable assets

Capital gains tax
Capital gains tax | Commentary

C1.103 Capital gains—chargeable assets

Capital gains tax | Commentary

C1.103 Capital gains—chargeable assets

For a gain or loss to be within the scope of tax on chargeable gains, there must be a chargeable disposal of a chargeable asset by a chargeable person. This article considers the definition of chargeable assets. For a discussion of chargeable persons and chargeable disposals, see C1.102 and C1.104.

Individuals, trustees and personal representatives are subject to capital gains tax on chargeable gains. Companies are subject to corporation tax on chargeable gains. See C1.102.

For a discussion of the computation of chargeable gains and losses, see C1.105. For the rates of tax that apply to chargeable gains, see C1.107.

Chargeable assets

An 'asset' include all forms of property, whether situated in the UK or not, including1:

  1.  

    •     options (see Division C2.10), debts (see below) and incorporeal property generally (which includes contractual rights, whether or not those rights are capable of being transferred or assigned, and whether or not they have a market value2)

  2.  

    •     any currency other than sterling, and

  3.  

    •     any form of property created by the person disposing of it, or otherwise coming to be owned without being acquired

This is discussed in detail in C1.301.

The legislation specifically exempts some assets from the scope of tax on chargeable gains3. Note that there is a difference between exempt gains and exempt assets. Exempt assets means if the asset is subject to disposal, then both the gain is exempt and the loss is not allowable. This is the default position, as the legislation states that, unless explicitly stated to

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