Capital Gains Tax and Individual Reliefs
Chargeable disposals, computational rules, shares, chattels, homes, losses and individual CGT reliefs.
How to study the ATT Qualification
Use Finance Act 2025 for the 2026 tax papers, complete the three foundational CBEs early, apply professional ethics throughout and concentrate option practice on the one paper you will enter.
Core concepts
Concept 1
A CGT computation starts with the disposal event, chargeable person, asset, proceeds, cost and incidental expenditure.
Exam cue: Identify the occasion of charge and market-value rule before computing.
Concept 2
Share matching, part disposals, connected parties and valuation rules can change the basic computation.
Exam cue: Apply losses, annual exempt amount and rates in the correct order.
Concept 3
Reliefs alter the amount or timing of a gain only when their detailed conditions are satisfied.
Exam cue: State whether a relief exempts, reduces, rolls over or defers the gain.
Risk pitfalls and guardrails
Treating every transfer without cash proceeds as outside CGT.
Guardrail: Do not use an obsolete tax rate, assume a relief, ignore legal form, submit unsupported information or omit the relevant deadline and ethical response.
Applying a relief without checking asset, use, ownership and claim conditions.
Guardrail: Do not use an obsolete tax rate, assume a relief, ignore legal form, submit unsupported information or omit the relevant deadline and ethical response.
Forgetting reporting and payment obligations after calculating the gain.
Guardrail: Do not use an obsolete tax rate, assume a relief, ignore legal form, submit unsupported information or omit the relevant deadline and ethical response.
Memory anchors
Gain
Disposal consideration less allowable cost and incidental expenditure.
Market value
Connected or non-arm's-length disposals may require market value.
Share matching
Match disposals using the prescribed identification order.
PPR
Private residence relief depends on qualifying ownership and occupation periods.
Deferral
A deferred gain remains capable of becoming chargeable later.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
An individual sells an asset for £72,000, paying £2,000 selling costs. It cost £40,000 plus £1,000 purchase costs. What is the gain before exemptions?
A taxpayer has net chargeable gains of £18,000 before the 2025/26 annual exempt amount of £3,000. What gains remain taxable?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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