CAPITAL GAINS TAX (CGT) PFP 14/15
Introduced in 1965 to tax assets which were not bought and sold as part of a trade. A CGT liability may arise when a chargeable person makes a chargeable disposal of a chargeable asset.

CHARGEABLE PERSON • individuals resident in UK • partnerships - assessed on individual partners • companies - pay corporation tax on chargeable gains

CHARGEABLE DISPOSAL • sale or gift of part or all of an asset • receipt of insurance claim following loss of chargeable asset • loss or destruction of a chargeable asset

Certain disposals are not subject to CGT because of the nature of the recipient • disposals by gift to charity • disposal by gift to institutions which exist for public benefit e.g. museums • disposals between spouses: Disposals between a husband and wife (or civil partners) who live together at any time during the tax year in which the disposal occurs are chargeable disposals. However, such disposals are deemed to occur at a disposal value such that neither a chargeable gain nor an allowable loss arises on the disposal. • disposals of chargeable assets caused by death: Net capital losses incurred in the tax year in which the taxpayer dies obviously cannot be carried forward Therefore such net losses may instead be carried back and set off against net gains of the previous three tax years (later years first).

CHARGEABLE ASSETS
No definitive list of chargeable assets but generally all assets should be considered chargeable unless covered by a specific exemption. Some of the main exemptions are: ▪ a taxpayer's principal private residence ▪ motor cars ▪ chattels sold for £6,000 or less ▪ gilt-edged securities ▪ National Savings Certificates and Premium Bonds ▪ winnings from