A charge to capital gains tax arises when a chargeable person makes a chargeable disposal of a chargeable asset. The disposal may produce a taxable profit (known as a gain) or an allowable loss. These terms are discussed in the Introduction to capital gains tax guidance note.

See Checklist ― calculation of capital gains and losses for issues to consider when reporting client gains and losses.

This guidance note covers the general rules used to calculate whether an individual has made a gain or loss on the chargeable disposal of a chargeable asset. For details of how to calculate gains and losses on disposals made by companies, see the Calculation of corporate capital gains guidance note.