CG38785 - The charge to Capital Gains Tax

Any TCGA92/S87 gain is added to the beneficiary’s other chargeable gains and charged at their appropriate rate of Capital Gains Tax.

Losses

TCGA92/S2(4)*

A taxpayer’s personal losses cannot be set against any s87 gains. Any personal losses should be set against their other gains and the balance carried forward.

Annual exempt amount

There are no restrictions on the use of the beneficiary’s annual exempt amount. It may be to the taxpayer’s advantage to have this set against any s87 gains first to minimise any increase in the rate of tax, CG38795.

Annual exempt amount: non-domiciled beneficiary

See CG38805 for the effect on the annual exempt amount if a non-domiciled beneficiary claims the remittance basis.

Capital Gains Tax Rates

See CG10245.

*This section was re-written for disposals from 6 April 2019 see CG10150.