Capital Gains Tax
Start with the chargeable person, the chargeable asset and the disposal event, then compute: proceeds (or market value for connected parties, gifts and certain transfers) less allowable acquisition cost, incidental costs and enhancement expenditure, less the annual exempt amount, taxed at the rate for the asset and the taxpayer's band position. Residential property and carried interest gains sit at 18%/24%; other gains at 18%/24% for individuals from 2024/25, with trustees and personal representatives paying the higher rate.
Share identification is a standard trap: same-day acquisitions first, then acquisitions in the following 30 days, then the s.104 pool. Part disposals use the A/(A+B) formula, and small part-disposal proceeds below £20,000 are effectively ignored.
Reliefs you must be able to sequence: private residence relief (with the final nine months, plus deemed occupation rules and the letting relief restriction to homeowners sharing with a tenant); business asset disposal relief (£1m lifetime limit, 10% rate, two-year qualifying period); gift relief under s.165 for business assets and shares; incorporation relief; rollover relief for replacement of business assets; EIS/SEIS deferral and reinvestment; investors' relief; and the transfer between spouses at no gain/no loss.
Traps: losses must be claimed within four years of the end of the tax year of disposal; negligible value claims create a deemed disposal; non-residents are within the charge on UK land and property; and the BADR conditions must be met for the two years ending with the disposal, not merely at the date of sale.
Rule of thumb: always show gains separately for each asset, deduct losses before the annual exempt amount, then apply rates - and never net a residential gain against a share gain before applying rate bands.