Overview
Criteria
modes
➢ selling it
➢ giving it away as a gift,
➢ transferring it to someone else
➢ swapping it for something else
➢ getting compensation for it – like an insurance payout if it’s been lost or destroyed
Chargeable Assets
You pay Capital Gains Tax on the gain when you sell (or ‘dispose of’):
➢ most personal possessions worth £6,000 or more, apart from your car
➢ property that’s not your main home
➢ your main home if you’ve let it out, used it for business or it’s very large
➢ shares that are not in an ISA or PEP
➢ business assets
These are known as ‘chargeable assets’.
➢ If you dispose of an asset you jointly own with someone else, you have to pay Capital Gains Tax on your share of the gain.
Non Chargeable Assets
You do not usually pay tax on gifts to your husband, wife, civil partner or a charity.
You do not pay Capital Gains Tax on certain assets, including any gains you make from:
➢ ISAs or PEPs
➢ UK government gilts and Premium Bonds
➢ betting, lottery or pools winnings.
Overseas Assets
➢ There are special rules if you’re a UK resident but not ‘domiciled’ and claim the ‘remittance basis’.
➢ You have to pay tax on gains you make on property and land in the UK even if you’re non-resident for tax purposes.
Special Rules on Gifts
- your spouse or civil partner charity
Gifts to Charity
➢ more than you paid for it
➢ less than market value
You can report losses on a chargeable asset to HM Revenue and Customs (HMRC) to reduce your total taxable gains. Losses used in this way are called ‘allowable losses’.