Capital gains tax (UK)
A chargeable gain generally reflects disposal proceeds or the applicable deemed value less allowable cost and other permitted deductions. The charge depends on the asset, person, exemptions, losses, reliefs and tax year; a disposal can include events other than an ordinary sale. Distinguish individual capital gains tax from corporation tax on a company’s chargeable gains and apply the relevant exam-period rules.
Worked example
An individual sells an asset for 20,000 after acquiring it for 12,000. Before transaction costs, exemptions or reliefs, the simple gain is 8,000.
Common mistake
Treating the entire sale proceeds as the gain or assuming every asset disposal is taxable.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |