CG18031 - Annual exempt amount: taxable amount: losses
A person is chargeable to Capital Gains Tax on the excess of his taxable amount for the year of assessment over his exempt amount for the year. CG18032 explains how the taxable amount for 1998-99 onwards is calculated in the normal case (that is, where there are no ‘attributed gains’, see CG18033). CG18033-4 are concerned with the situation where the person has gains attributed to him under TCGA92/S77, TCGA92/S86 (gains attributed to certain settlors), TCGA92/S87 or TCGA92/S89(2) (gains attributed to beneficiaries of certain non-resident trusts.) There are examples illustrating these points at CG18199 +.
CG18033-4 are concerned with the situation where the person has gains attributed to him under TCGA92/S86 (gains attributed to certain settlors), TCGA92/S87 or TCGA92/S89(2) (gains attributed to beneficiaries of certain non-resident trusts.) There are examples illustrating these points at CG18199 +.
In the normal case the taxable amount, see CG18031, is calculated as follows. The relevant legislation can be found in TCGA92/S3(5)*, TCGA92/S3(5A)* and TCGA92/S3(5B)* and TCGA92/S62(2B).
- Calculate the gross amount of chargeable gains before losses, but after all other deductions and reliefs have been applied in computing the chargeable gains.
- Deduct any allowable losses for the year, even if this reduces the net gains below the annual exempt amount.
- Deduct any losses brought forward but only to the extent required to reduce the net gains to the annual exempt amount.
- Where the taxpayer is an individual who is now deceased, deduct any losses accruing to him or her for the year of death which can be carried back, see CG30430, but only to the extent required to reduce the net gains to the annual exempt amount, after applying the previous bullet.
- The calculation was modified to take account of taper relief until 2007/2008.
The calculation is illustrated by the examples at CG18201.
*This section was re-written for disposals from 6 April 2019 see CG10150