Taxation of Chargeable Gains Act 1992 section 1

Capital gains tax

Section 1 establishes the basic charge to capital gains tax (CGT) on individuals who dispose of assets, and explains how allowable losses are deducted when calculating the taxable amount.

• Capital gains tax is charged on chargeable gains arising from the disposal of assets within a tax year.
• Companies are excluded from CGT; their chargeable gains are instead subject to corporation tax under the Corporation Tax Acts.
• The taxable amount is calculated by deducting any allowable losses incurred in the same tax year from the total chargeable gains.
• Any unused allowable losses from previous tax years can also be deducted, provided they have not already been set against gains in an earlier year.