ABSTRACT
Capital gains tax (CGT) was introduced in the Finance Act and arises on the disposal of any chargeable asset, business or private: freehold or leasehold properties, and stocks and shares. The rate of CGT is charged at the individual taxpayer's marginal rate. Roll-over relief only applies to business assets and not to disposal of shares or investment property. Roll-over relief can be applied an indefinite number of times although, in reality, the point will be reached where it is no longer viable. If only part of the sale proceeds is reinvested then cash will be available to pay CGT and, therefore, only part of the gain will qualify for relief. If the asset is replaced the roll-over relief will apply to the further replacement asset. An example of a depreciating asset is a leasehold property. In calculating CGT it is permissible to deduct expenses arising in connection with the acquisition and disposal.
