UK.

Persons, including individuals and trustees tax resident in the United Kingdom and personal representatives of a deceased person who was tax resident in the UK when he or she died. Companies within the charge to UK corporation tax are normally liable to that tax in respect of their chargeable gains rather than to capital gains tax.

Persons not tax resident  but carrying on a trade in the United Kingdom through a branch or agency (or permanent establishment) on gains on the disposal of chargeable assets situated in the United Kingdom and used for the purpose of that trade branch or agency. Individuals who are temporarily not resident in the UK.

Where assets are held by nominees or bare trustees the charge falls on the beneficial owner. Under certain circumstances gains accruing to companies or trustees not resident in the United Kingdom may be charged on certain persons (for example, a settlor or beneficiary of the trust) who are so resident.

From 6 April 2013, companies and other corporate bodies, wherever resident, disposing of high value residential property that is also chargeable to annual tax on enveloped dwellings (ATED).

From 6 April 2015, most non UK tax-resident persons, including companies and other corporate bodies, disposing of UK residential property.

Gains on the disposal of chargeable assets wherever situated.

All forms of property (other than sterling) are assets for the purposes of the tax including both tangible and intangible assets and interests or rights in or over property. However, the gains on certain assets are not treated as gains chargeable to tax either (a) because of their nature or (b) because of the status of the disposer or (c) because of the status of the recipient

Disposal includes any occasion when the ownership of an asset is transferred in whole or in part (except on death), for example by sale, exchange or gift; or when the owner of an asset derives a capital sum from it, for example when compensation is received for damage to or destruction of an asset.

Disposal also includes certain deemed disposals, for example on a company ceasing to be resident in the United Kingdom or on a non‑resident person ceasing to carry on a trade in the United Kingdom through a branch or agency.

An individual not of United Kingdom domicile may elect to be liable on gains on assets situated abroad only to the extent that the gains are remitted to the United Kingdom.

The basis of assessment is chargeable gains less allowable losses. Allowable losses are generally computed in the same way as chargeable gains.

In general, a gain is the consideration received for disposal (or the market value if there is no consideration or the transaction is not at arm's length) less the cost of acquisition together with expenses of acquisition and disposal and certain other allowable expenditure on the asset. Any amount charged to income tax or corporation tax as income or taken into account as a receipt or allowable as a deduction in calculating income is excluded from the computation.

For companies and other corporate bodies, relief is given for the effect of inflation on costs of acquisition etc. when calculating chargeable gains ('indexation').

Deductions:

 Expenditure incurred for the purpose of enhancing the asset; incidental costs of acquiring and disposing of the asset.

 Allowances:

The first GBP 11,100 (tax year 2015-16) of an individual's net chargeable gains (after allowable losses) are exempt from capital gains tax (GBP 5,550 for most trustees).This annual exempt amount is updated annually in line with inflation unless specific counter provision is made. Companies are not entitled to the annual exempt amount.

Exemptions:

The main exclusions from charge are: a person's main residence;wasting chattels not eligible for capital allowances; chattels worth GBP 6,000 or less; some life insurance policies; British Government gilt -edged securities; certain other securities and privtae motor cars. Other exclusions include gifts of assets to charities and other bodies concerned with the national heritage , gifts of land and buildings for public benefit and disposals of shares qualifying for Enterprise Investment Scheme relief and of shares held in individual savings accounts.

Subject to certain conditions, disposals by a trading company (or a holding company of a trading group)of shares in a trading company are exempted where the holding is 10% or more.

Persons wholly or partially exempted include local authorities, charities, registered pension schemes, friendly societies, registered trade unions, authorised unit trusts, open‑ended investment companies, approved investment trusts and certain other persons qualifying for exemption from income tax.

Where a person pays non-UK tax in respect of a gain relief may be allowed from double taxation.

The rate of tax for individuals is 18% on gains (net of losses and the annual exempt amount) where their gains and income after the annual exempt amount remain below the income tax basic rate threshold. All gains exceeding this threshold are taxed at 28%. Trustees' gains, gains of personal representatives of deceased persons (net of losses and the annual exempt amount), and gains by companies on residential property that is chargeable to annual tax on enveloped dwellings (ATED) are charged at a flat rate of 28%.

Individuals are eligible for a 10% tax rate for the first GBP 10 million of lifetime gains on disposals of unincorporated trading businesses or shares or securities in trading companies (or holding companies of trading groups) in which they have a minimum 5% stake and for which they work (entrepeneurs' relief), subject to a minimum holding period of one year. Trustees of trusts with a qualifying beneficiary may also be eligible for this relief.

Companies' gains normally form part of the profits chargeable to corporation tax and are thus charged at normal corporation tax rates, except for those that are within the North Sea ring-fenced regime.

Capital gains tax is normally payable on or before 31st January, 9 months after the end of the tax year (previous 5th April) in which the gains arise.

Corporation tax liability (in respect of income and gains) is normally due 9 months after the end of the accounting period in which the income and gains arise. Finance Bill 2013 introduced a deferral of tax payments for up to ten years to EU and EEA companies moving to another Member State in respect of corporation tax charges on unrealised gains arising at the time of migration.

Non-residents who dispose of UK residential property make a payment on account for the tax year within 30 days of disposing of the property unless they already make a self -assessment return to HM Revenue & Customs.

Taxpayers are responsible for assessing and accounting for their liability to corporation tax or capital gains tax each year within the self assessment system.

Reliefs:

Where proceeds from disposal of certain classes of ‘business asset' are reinvested in replacement qualifying business assets, the gain on the disposal may be deducted from the cost of the new assets instead of being charged tax (‘roll-over relief').

When a person who is not a company transfers a business including the whole of the business assets to a company in exchange for shares issued to him by that company, the aggregate net gains are normally deducted from the cost of the new shares and not charged to tax.

A charge to tax on gains arising on gifts of 'business assets' by individuals and trustees, and gains on transfers out of trust, may in certain circumstances be deferred.

Transfers of assets between spouses or civil partners are treatede as giving rise to no gain to the transferor. The unrealised gain is 'inherited' by the transferee.

Allowable capital losses which arise to the original shareholder in disposals of new issues of unquoted shares in small high‑risk trading companies may, subject to certain conditions, be set against income if not set against chargeable gains.

Transfers of assets between members of a group of companies are treated as giving rise to neither gain nor loss, provided that any gain on a subsequent disposal of the assets be chargeable to UK tax. A group of companies for this purpose comprises a principal company and its 75% subsidiaries, wherever resident. Transfers of assets between spouses or civil partners in a tax year for some part of which they are living together are treated as not giving rise to either a gain or a loss.

Special provisions may apply to defer charges to tax where companies are amalgamated or acquired by an exchange of share capital or where a company acquires part of the business of another company by issuing shares or securities.

Subject to certain conditions, tax on gains may be deferred where an individual disposes of any asset and reinvests the gain in shares in a qualifying unlisted trading company under the Enterprise Investment Scheme, or in certain social enterprises (Social Investment Tax Relief).

Gains arising from the disposal of an individual's principal private residence are usually exempted.

Losses:

Usually allowable if a gain in the same transaction would have been chargeable. From 6 April 2013 losses on disposal of high value residential property that is also chargeable to annual residential property tax allowable only against gains on similar disposals. Losses are set primarily against gains of the same year and any excess may be carried forward without time limit and set against gains of later years. Losses are not allowable unless claimed within a specified time limit.

From 6 April 2015, for non-UK residents, only losses on the disposal of UK residential property can be set against gains on similar assets.

Capital losses created as part of a tax avoidance scheme or arrangements are not allowable.