2): Basic CGT Calculation

Question 1

Step 1: Establish Liability

Answer 1

Is the taxpayer an individual, partner in a partnership, personal representative of an estate, or a trustee of a trust?

✅ Note: No CGT for companies or on transfers between spouses/civil partners.

Question 2

Step 2: Identify the Disposal Value

Answer 2

Sale price or deemed market value if gifted.

Question 3

Step 3: Deduct Costs

Answer 3

Cost of the asset

Acquisition and disposal costs (e.g. legal or agent fees)

Allowable capital expenditure

Question 4

Step 4: Calculate Basic Gain

Answer 4

Disposal Value – Allowable Costs = Basic Gain

Question 5

Apply Exemptions and Reliefs

Answer 5

Annual exemption

Hold-over, roll-over, or private residence relief

Question 6

Step 6: Determine Chargeable Gain

Answer 6

Basic Gain – Exemptions = Chargeable Gain

✅ Tip: Losses can offset gains to reduce liability.

Question 7

Step 7: Calculate and Pay Tax

Answer 7

Apply the appropriate CGT rate

Tax is payable via Self-Assessment