Commentary

C1.107 Rates of tax on chargeable gains

Capital gains tax
Capital gains tax | Commentary

C1.107 Rates of tax on chargeable gains

Capital gains tax | Commentary

C1.107 Rates of tax on chargeable gains

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. See C1.104, C1.103 and C1.102 respectively.

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.

This article discusses relief for rate of tax on chargeable gains. For the computation of chargeable gains and losses, see C1.105. For the use of allowable losses, see C1.106.

Companies

Chargeable gains of companies and other bodies that are subject to corporation tax are taxed at the applicable rate of corporation tax for the accounting period1. See C1.208 and D1.901.

Liability of companies to capital gains tax before 6 April 2019

Prior to 6 April 2019, companies could have been subject to capital gains tax (rather than corporation tax) on disposals of UK residential property under two different regimes:

  1.  

    •     between 6 April 2013 and 5 April 2019, a company (whether or not it was resident in the UK) may have been subject to capital gains tax on disposals of UK residential property under the annual tax on enveloped dwelling (ATED) related capital gains tax rules2. Capital gains tax of 28% was charged on these gains. See C2.1125. This regime was repealed with effect from 6 April 2019

  2.  

    •     between 6 April 2015 and 6 April 2019, a non-resident company may have been subject to UK capital gains

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