Capital Gains Tax

Question 1

What is capital gains tax?

Answer 1

Charged on chargeable persons making chargeable disposals of chargeable disposals.

Question 2

What are chargeable disposal examples?

Answer 2

• Sale or gift of an asset
• Exchange of an asset
• Loss or destruction
• receipts derived from a capital sum

Question 3

What are exempt disposal examples?

Answer 3

• Disposal as a result of death
• Gifts to charities

Question 4

What are chargeable assets?

Answer 4

Capital assets:
- Freehold land and buildings
- Goodwill
- Shares (quoted and unquoted)
- Certain chattels

Question 5

Steps of calculating capital gain/loss

Answer 5

1. Calculate Chargeable gain or allowable loss
2. Calculate Net Chargeable Gain
3. Deduct annual exempt amount
4. Deduct Capital losses b/f
5. Calculate CGT payable