Who needs to declare Capital Gains Tax?

CGT, which is short for Capital Gains Tax, is a tax that is charged on gains arising on “chargeable persons” making a “chargeable disposal” of “chargeable assets”. 

 First, let’s deal with what a “chargeable person” is.  

A “chargeable person could be either an individual or a company.  

This blog is going to cover disposals by individuals, please keep an eye out for a follow-up blog covering disposals by companies.  

Individuals who are UK resident for tax purposes in the year in which the disposal takes place are considered a “chargeable person” and are subject to capital gains tax on their gains. 

  • UK residents are subject to UK CGT on all disposals of chargeable assets, regardless of where in the world the assets are situated. 
  • Non-UK residents only pay CGT on the disposal of interests in UK land/property.  

Now, let’s cover what a “chargeable disposal” is. 

The following disposals would be considered “chargeable” 

  • Sale or gift of the whole or part of an asset (such as property, land, etc…) 
  • Exchange of an asset  
  • Loss or destruction of an asset 
  • Receipts of a capital sum derived from an asset, such as:
  • The compensation received for damage to an asset. 
  • Receipts for the surrender of rights to an asset. 

The following disposals in the eyes of HMRC would be classed as exempt, in other words, non-chargeable disposals. 

  • Disposals as a result of the death of an individual 
  • Gifts to charities  

Please note that a disposal classed as exempt are outside the scope of CGT and therefore the gains are not taxable, and the losses are not allowable. 

Finally, let’s cover what a “chargeable asset” is.  

The following table details the more common types of chargeable assets as well as those that are exempt.  

Chargeable AssetsExempt
Freehold land and buildings Motor vehicles 
Unquoted/Quoted shares  Principal private residence  
Certain chattels  Investments held within an ISA 
Goodwill Qualifying corporate bonds  
Gilt-edged securities  
NS&I certificates  
Prizes and betting winnings  

Therefore, to conclude on who needs to declare capital gains tax in the UK, this would be any individual that is a UK resident for tax purposes and who completes a chargeable disposal of one of the above (and more) chargeable assets would need to declare CGT. 

If this blog has sparked a few questions in your mind, please feel free to get in contact on 01273 441 187 or via george@peterjarman.com and I will be more than happy to help.   

George Laingchild PJCO Peter Jarman
George Laingchild


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Charles Lyell

Never call an accountant a credit to his profession; a good accountant is a debit to his profession.

Charles Lyell