The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
In general terms, a charge to capital gains tax arises when a chargeable person makes a chargeable disposal of a chargeable asset. The disposal may produce a profit (known as a gain) or a loss.
See Checklist ― calculation of capital gains and losses for issues to consider when reporting client gains and losses.
A chargeable person could be an individual, a trustee, a personal representative or a company, although companies are subject to corporation tax on chargeable gains not capital gains tax. For further discussion, see CG10700 and Simon’s Taxes C1.102.
Exempt persons include, amongst others, charities (so long as the gain is applicable and applied for charitable purposes) and local authorities. See CG10760.
Generally, if an individual is resident in the UK in the tax year they are chargeable to tax on capital gains arising in that tax year. See ‘Overseas aspects’ below for a discussion on the taxation of gains on non-resident individuals and those accessing the remittance basis of assessment.
The most common way for a person to dispose of an asset is to sell it to another person. However, a gift or an exchange also constitutes a disposal for capital gains tax purposes. There are provisions within the capital gains tax legislation that provide for the loss or destruction of an asset also to be treated as a disposal. For a list of other deemed disposals, see CG12703.
Assets are chargeable for capital gains tax purposes unless they are specifically
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