Why it matters
The calculation usually starts with the disposal proceeds and relevant allowable cost, then considers reliefs, losses and the individual’s wider position. A disposal can involve a gift or transfer as well as a sale. Property, investment and business transactions can have different reporting requirements. Check the position before completing a transaction, especially where connected people or companies are involved.
A practical example
An asset bought for £20,000 is later sold for £30,000. The starting increase is £10,000, not the full £30,000 receipt. The actual taxable gain can differ after permitted costs, reliefs and other rules. This is an illustration of the concept, not a calculation of a particular person’s liability.
A common misunderstanding
Keeping the proceeds in a bank account does not normally postpone the disposal itself. A company’s gains are also generally considered within Corporation Tax rather than applying an individual’s CGT calculation. Obtain advice for the owner and asset concerned.
Sources & further reading
General information for UK readers, updated 3 November 2026. Examples are illustrative. Tax treatment depends on the facts and current rules; seek advice before making a decision.