This is a draft cheat sheet. It is a work in progress and is not finished yet.
When does capital gains tax (CGT) liability arise?
when a chargeable person makes a chargeable disposal of a chargeable asset. |
Exempt Assets
• Principal private residence. |
• Motor vehicles (including vintage cars). |
• Chattels sold for ≤£6,000. |
• Betting winnings. |
• Government securities. |
• Chattels with ≤50 years useful life. |
Chargeable Disposals
• Sale, gift, loss, or destruction of an asset. |
• Capital sums (e.g., insurance compensation). |
Business Asset Disposal Relief (BADR)
Always 10% on qualifying business disposals. |
|
|
Chargeable Persons
• Individuals resident in the UK. |
• Business partners (on partnership capital gains). |
• Trustees. |
• Personal representatives of a deceased person. |
Exempt Disposals
Not chargeable. |
• Gifts to charities. |
• Disposals on death. |
CGT Rates
Standard Rate |
10% (if taxable income ≤ £37,700). |
Higher Rate |
20% (if taxable income > £37,700). |
Calculation
1. Deduct capital losses (current year first, then previous years if needed). |
2. Apply the annual exemption (£3,000 for 2024/25). |
3. Allocate unused Basic rate band |
| |
- First to BADR gains. |
| |
- Then split between residential property and other gains. |
|
|
Not Chargeable Persons
• Companies (pay Corporation Tax on capital gains instead). |
• Organisations like registered charities, health service bodies, pension schemes, and scientific associations. |
Disposals that occur at No gain/No loss
• Spouse Transfers. |
• Heritage Property gifts. |
• Share disposals to employee trusts. |
Date: Ownership change, not payment. |
Residential Property Rates
if not eligible for principal private residence relief. |
Basic Rate |
18% |
Higher Rate |
24% |
|
