28 Taxation of capital gains and rate of charge

Summary

The charge to capital gains tax arises in respect of gains accruing to a person in a year of assessment on the disposal of assets. The capital gains tax rate is, subject to exceptions, 33 per cent.

Details

(1) The charge to capital gains tax arises in respect of chargeable gains accruing on the disposal of assets. Such gains are computed in accordance with the provisions of the Capital Gains Tax Acts. The charge extends to individuals, companies and unincorporated bodies of persons.

(2) The tax is assessed and charged for years of assessment in respect of chargeable gains accruing in those years.

(3) Subject to exceptions provided for in the Capital Gains Tax Acts, for example, a 40 per cent rate of tax on the disposal of —

• certain foreign life assurance policies (section 594), and
• units in certain offshore funds (section 747A),

the rate of capital gains tax is 33 per cent.

Relevant Date: Finance Act 2019