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Chargeable gain (UK)

A chargeable gain generally begins with disposal consideration or an applicable deemed value, less allowable acquisition and disposal costs and any other permitted adjustments. The asset, person, transaction and available exemptions or reliefs determine the result. Aggregate gains, allowable losses and the annual exempt amount under the applicable year’s rules before calculating tax; an individual’s capital gains tax calculation differs from a company’s corporation-tax calculation.

Worked example

An individual sells a chargeable asset for £30,000, having paid £18,000 for it and £1,000 in allowable disposal costs. Assuming no further adjustments or reliefs, the gain is £11,000 before annual exemptions and tax.

Common mistake

Treating gross sale proceeds as the gain or assuming a gift can never be a disposal for capital gains purposes.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA TX (UK) Direct June 2026–June 2027