A comprehensive overview of Capital Gains Tax (CGT), covering its fundamental components, calculations, and various reliefs. The first source defines CGT as a tax on the "gain" made by a "chargeable person" from the "disposal" of a chargeable asset, detailing who is liable, such as individuals, sole traders, and partners. The second source outlines key exemptions and reliefs, including Private Residence Relief (PPRR) for a main home, exemptions for wasting assets and non-wasting assets sold below £6,000, and business-focused reliefs like Business Asset Disposal Relief (BADR) and Roll-Over Relief which often defer or reduce the tax rate. Finally, the third source explains the four-step calculation process for CGT, which involves determining the Gross Gain by subtracting allowable expenditures (including initial, subsequent, and disposal costs), applying losses and reliefs, utilizing the Annual Exempt Amount, and then applying the correct tax rates based on the asset type and the taxpayer's income band.
