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Principles of UK capital gains tax

As noted in UK1.1 the scope of capital gains tax depends on the residence and before 6 April 2025, domicile status of the individual. Before 6 April 2025, if they are not domiciled they have the opportunity to shelter offshore income and gains from UK income and capital gains tax by claiming the remittance basis of taxation. For details of the remittance basis and the changes applying from 6 April 2025 see UK1.2.6.

In general terms, a charge to UK capital gains tax arises when a chargeable person makes a chargeable disposal of a chargeable asset. The disposal may produce a gain or a loss.

The most common way for a person to dispose of an asset is to sell it to another person. However, a gift or an exchange also constitutes a disposal for UK capital gains tax purposes. Note that if the disposal is not a bargain at arm's length, the market value is substituted for the actual proceeds received (TCGA 1992, s 17). There are provisions