The scope of CGT
In this introduction to capital gains tax, you'll learn the fundamental scope of CGT and what triggers a chargeable gain. You'll discover the three essential elements required—a chargeable person, a chargeable asset, and a chargeable disposal—and understand how each applies in practice.
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In this lesson
- 0:00 Introduction to Capital Gains Tax
- 0:22 Scope of CGT: Three Key Requirements
- 0:36 Chargeable Persons and Assets Defined
- 0:55 Death and Inheritance Tax Treatment
- 1:29 CGT Rates and Relief Thresholds
- 1:57 Annual Exempt Amount Explained
About this lesson
The lesson covers exempt assets, how to prepare a CGT computation, the impact of connected persons, and key differences between how individuals and companies are taxed on gains. You'll also explore the CGT rates that apply to different taxpayers (18% for basic rate, 24% for higher rate, and 14% when business asset disposal relief applies) and learn how the annual exempt amount works to reduce your taxable gains. The lesson explains why death triggers no chargeable event for CGT purposes and how inherited assets receive a base cost uplift to probate value. By the end, you'll have a clear understanding of when CGT applies and how to identify chargeable transactions—essential knowledge for tackling CGT questions across ACCA's taxation papers.
Duration: 3m
Transcript
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