CGT computation
You'll learn how to calculate a chargeable gain from start to finish, breaking down the capital gains tax computation into its key components.
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In this lesson
- 0:00 Capital gains tax computation overview
- 0:08 Sales proceeds and arm's length transactions
- 0:48 Deductible costs and acquisition expenses
- 1:46 Chargeable gains before reliefs
- 2:13 Tax treatment across different asset types
- 2:34 Annual exempt amount and loss relief
About this lesson
This video walks you through the pro forma used in practice: starting with sales proceeds, deducting costs of sale and acquisition (including enhancements), and applying reliefs to arrive at your taxable gain. You'll understand how to handle different asset types, the annual exempt amount, and why residential property requires separate treatment. Essential for TX and ATX papers, this technique forms the foundation of capital gains tax questions across your exam.
Duration: 3m
Transcript
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