Capital gains tax- Tax levied on . Liability to tax only arises when is of

Capital gain- in value of an on its by an individual or company

Capital gains tax was introduced in . In , there was amendment to allow for effects of on gains by way of . In , there was slight amendment to . In , tax was rebased so that gains before would no longer be to capital gains taxation. In , all various legislation relating to capital gains tax was brought into . In , indexation was abolished for but kept for (taper relief formed for - only lasted for 10 years until ). Instead, there was general rate of tax on gain of . On , there was additional rate of if you are higher rate taxpayer. On , general rate reduced to & , except for sales of residential property, which remains at or

( in UK) are liable to capital gains tax. If you aren't in UK, you are liable to capital gains tax at present on

are liable to capital gains tax. owns proportion of assets held within & would be liable to capital gains tax if part of assets are

(look after assets in ) are liable to capital gains tax

(in position of winding up person's ) are liable to capital gains tax

schemes, & itself are not liable to capital gains tax

All are liable to capital gains tax unless they are specifically exempt such as , motor , (sold for < £6,000), wasting , winnings from or , holdings & acquired from employer via employee shareholder status

Chargeable disposals include sale of an but also sale of of chargeable asset, of chargeable asset, of chargeable asset & of capital sum from chargeable asset

Non-chargeable disposals include gifts to , gifts on & gifts from to or vice versa)

Although of capital assets can occur at any time for individuals, all or or events for capital gains tax are combined within tax year. You would work out capital gain or loss for each or & them to arrive at total gain or loss within tax year. Net gain during year liable to tax & net loss, can be carried & set against future in future tax years

Once you have calculated gain for year, you deduct (£12,300). This gives for year

Losses during year gave to be deducted from during same year but losses brought forward are only utilised to net gain for year down to amount equal to if there are enough to do so

Losses for individual in year of (any sales from 6th April to date of their death) will be in usual way. There is no possibility of carrying loss so loss in year of can be carried back for years & will be utilised under basis

Losses to persons can only be set against future on disposal to person

Losses are not allowed if to be as a result of arrangements made by to create loss

If there is sale to connected parties, for capital gains tax will be at that date. This is because connected parties are /civil partners, , direct & direct , relatives & their & business & business spouses & relatives. Therefore, you are more likely to sell at to these people or make

Market value of for capital gains tax is lower of &

Chattel- property such as , , , etc

Wasting asset- Asset with an expected life

Wasting chattel- property with an expected life

General exemption for chattels is if sold for < or = £6,000 gain is . £6,000 is disposal value. If sold for > £6,000, maximum gain is (proceeds- £6,000). If bought for > £6,000 & sold for < £6,000, calculate as if proceeds is £6,000

Wasting chattels include , horses, antique , , vintage & . All wasting chattels are . Only time when wasting chattels will be liable to capital gains tax is if had been claimed. If these items are sold for < cost, deduct from capital allowances pool but if sold for > cost, deduct from capital allowances pool. will be excess of proceeds over original cost

Other wasting assets include assets such as or . These are liable to capital gains tax but is written down on basis over its life

Negligible value claim usually applies to so company has gone into / but not yet complete (still own shares but they are worth nothing). Letter from person administering winding up to say you won't be getting anything for . You can claim that are worth nothing & can set this off against gains. If there are any from shares in subsequent years is treated as nothing

House you are living in is from capital gains tax. You need to have actual (actually in house) however, there is exemption if you have to live in accommodation. You can only have principal private residence at any . If you have more than , you need to elect which is going to be your principle private residence. Also, you can only have principle private residence per couple. Exemption includes

In some cases you can claim exemption for capital gains tax. You have to calculate what part is & what part is , look at of residence/ownership, ignore anything before , last months treated as if you were resident (changed to months since April 2020). You can also claim residence & treat those as if you are actually there

Deemed residence includes any period of when you are working . You can also claim up to years working elsewhere in UK. Also, you can claim any other absence of up to years. To claim deemed residence, you need to have actual before & after deemed residence