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Is Capital Gains Tax (CGT) part of Income Tax?
Q: Is Capital Gains Tax (CGT) part of Income Tax?
Who are chargeable persons for CGT?
UK residents (taxable on worldwide gains), except charities and exempt transfers between married couples/civil partners.
Q: What are chargeable assets?
All capital assets unless exempt.
What are exempt assets from CGT?
Main residence (wholly), assets in an ISA, wasting chattels (<50 years lifespan), chattels sold for £6,000 or less, gilts, qualifying corporate bonds (QCBs), cash, and gifts to charities.
What are chargeable disposals for CGT?
Sale, gift, loss, or destruction of an asset.
How do you calculate a chargeable gain?
Disposal Proceeds
Less: Incidental costs of disposal
Net Proceeds
Less: (Cost of Acquisition + Improvements + Incidental costs)
Gain/Loss
What are ‘proceeds’ in CGT calculations?
Normally sale proceeds, but for connected person sales or gifts, it’s market value. For lost/destroyed assets, proceeds = £0.
What is ‘base cost’ for CGT?
Purchase: Amount paid + incidental costs
Gifted: Market value at the date of the gift
Inherited: Market value at death
Improvements: Capital costs + incidental costs
What is the Annual Exemption (AE) for CGT in 2024/25?
£3000
What are the CGT rates for non-residential property?
Within the basic rate band: 10%
Above the basic rate band: 20%
What are the CGT rates for residential property?
Within the basic rate band: 18%
Above the basic rate band: 24%
What are wasting chattels, and are they taxable?
Tangible, moveable property with an expected life of ≤50 years – exempt from CGT.
What are non-wasting chattels, and are they taxable?
Tangible, moveable property with an expected life of >50 years – taxable (with some reliefs available).
How do you calculate CGT on part disposals?
original cost x (selling price / (selling price x MV of retained part))
