How To Work Out CGT

Question 1

How to work out CGT

Answer 1

Note: chattels or wasting assets EXEMPT FROM CGT. E.g cosmetics and vintage cars

1. Calculate amount by which disposal (sell) exceeds £6000.
   E.g 15-6
   =9
2. Multiply 9 by 5/3 = maximum chargeable gain.
3. Work out net gain is disposal (sell) minus expenses and costs of acquisition(buy) = Actual Chargeable GAIN.
4. Compare with maximum chargeable gain and choose LOWER amount for the tax form.

Take Actual gain - exemption amount (12300?) = amount for tax

Only pay CGT on difference
E.g amount of tax X 10%