Capital gains tax is paid by a chargeable person making a chargeable disposal of a chargeable asset.
What is a chargeable person?🙍
This could be an individual, a company or a partner in a partnership
What is a chargeable disposal?😳
A chargeable disposal is when you sell assets as a taxable person. You will have to pay Capital gains tax on the profit you make. This is even the case when you give assets away. 😒
HMRC will treat gifts as a taxable disposal by computing how much you would have made if you sold it minus how much it cost you. This will be taken as your profit and you will be taxed on this amount.🎗
What are chargeable assets?
Most assets are chargeable but there are some exemptions.✔
Your main property: this is capital gains tax exempt✔
Guilts( government IOUs): these are capital gains tax exempt✔
Items worth up to £6k: these are capital gains tax exempt✔
Cars: these are capital gains tax exempt✔
ISAs: these are capital gains tax exempt✔
Betting( including spread betting): Capital gains tax exempt.✔