For a gain or loss to be within the scope of tax on chargeable gains, there must be a chargeable disposal of a chargeable asset by a chargeable person. See C1.104, C1.103 and C1.102 respectively.
Individuals, trustees and personal representatives are subject to capital gains tax on chargeable gains. Companies are subject to corporation tax on chargeable gains. See C1.102.
This article discusses relief for annual exempt amount. For the computation of chargeable gains and losses, see C1.105. For the rates of tax that apply to chargeable gains, see C1.107.
Annual exempt amount
The annual exempt amount applies for capital gains tax only. Companies are not entitled to an annual exempt amount.
Essentially, the annual exempt amount (also known as the AEA or the annual exemption) is the amount of tax-free chargeable gains that a person can realise in the tax year. It is deducted from the net chargeable gains for the tax year (ie the current year gains after setting off current year allowable losses and brought forward losses) to give the total taxable gains1.
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Web page updated on 26 Aug 2024 08:43