Capital gains disposals

Main details

The Capital Gains Disposals Main details tab has been updated to enable reporting of Non-resident Capital Gains and Investors' Relief. The information you will be asked to enter on this tab will vary according to the asset type that you select.

Description of asset

Enter a description of the asset. This will appear on the Annual Data Navigator and be used in the Capital Gains data schedules. You will not be able to Apply or OK this page until you have entered a description.

Asset type

Use the drop-down to select the asset type from:

  • Listed shares and securities
  • Unlisted shares and securities
  • Residential property (excluding gains qualifying for BADR)
  • Other property
  • Other assets and gains
  • Gains from earlier years

Listed / Unlisted shares and securities

Select Listed shares and securities if the asset represents shares quoted on a recognised stock exchange.

Select Unlisted shares and securities if the asset represents shares not quoted on a recognised stock exchange.

Disposal of shares qualifying for Business Asset Disposal Relief can be entered as Listed or Unlisted shares but, in accordance with HMRC guidance, they will be reported on the SA108 Capital gains summary pages in the Other property, assets and gains, to ensure that the calculation is correct.

Enter the following on the remainder of the Main details tab:

Option Description
Date of disposal Enter the date on which the asset was disposed. This must be within the tax year.
Disposal type

Select one of:

  • Business Asset Disposal Relief: Qualifying business disposal (QBD)
  • Business Asset Disposal Relief: QBD associated disposal (AD)
  • Investors’ Relief: QBD associated disposal (IR) (for Unlisted shares and securities only)
  • Not qualifying for Business Asset Disposal or Investors' Relief
A qualifying business disposal may be a material disposal of business assets, a disposal of trust business assets or a disposal associated with a relevant material disposal.
Business name

You can choose from the list of existing business names or type a new name into the box. QBD transactions with identical business names will be aggregated to a net gain for the business.

You will only be able to enter Business name if you have selected Business Asset Disposal Relief: QPD or AD at Disposal type.
Transaction details
Option Description

Enter where indicated:

  • Disposal proceeds
  • Incidental costs of disposal
  • Date of expenditure or valuation
  • Cost/ Value
  • Incidental costs of acquisition

There are three data entry columns, to enable you to enter the amounts appropriate to:

  • Share pool (s104 holding)
  • same day acquisitions
  • assets acquired within 30 days following the disposal
Foreign tax allowable as a deduction

Enter any foreign tax to be treated as an expense.

Foreign tax claimed as a tax credit should be included in the Foreign gain section of the Reliefs & other information tab.
Non-qualifying part of gain on QBD AD

Enter the proportion of the net gain that does not qualify for Business Asset Disposal Relief.

You will only be able to enter a figure here if you have selected QBD associated disposal (AD) at Disposal type.

Residential property (excluding gains qualifying for BADR)

Select this option if the disposal is of an asset qualifying as residential property and treated as an Upper rate gain.

Option Description
Asset type

In addition to identifying the asset as Residential property, select one of the following descriptions of your client and the location of the property:

  • UK resident disposing of UK property
  • UK resident disposing of overseas property
  • Non-UK resident disposing of UK property (Direct disposal).
Note:

Enter indirect disposals of non-UK property by a non-UK resident at Other property > Non-UK resident indirect disposal.
Date of disposal Enter the date on which the asset was disposed. This must be within the tax year.
Disposal type This must be Other for Residential property and cannot be amended.
Business name This is disabled as it is not relevant for property.
Transaction details
Option Description

Enter where indicated:

  • Disposal proceeds
  • Incidental costs of disposal
  • Date of expenditure or valuation
  • Cost/ Value
  • Incidental costs of acquisition

There are two data entry columns, to enable you to enter the amounts appropriate to Acquisition and Enhancement of the property.
Foreign tax allowable as a deduction

Enter any foreign tax to be treated as an expense.

Foreign tax claimed as a tax credit should be included in the Foreign gains section of the Reliefs & other information tab.
Non-qualifying part of gain on QBD AD

This is disabled as it is not relevant for Residential property.

Other property

Select this option if the disposal is of non-residential land or property or an indirect disposal of residential property by a non-UK resident.

Option Description
Asset type

In addition to identifying the asset as Other property, assets and gains, select one of the following descriptions of the asset:

  • UK resident disposal
  • Non-UK resident direct disposal
  • Non-UK resident indirect disposal

An indirect disposal relates to the disposal of a ‘property-rich’ company where the individual holds an investment of 25% or more in the company and there is no trading exemption.
Date of disposal

Enter the date on which the asset was disposed. This must be within the tax year.

Date of disposal will only appear if you select either Other property or Other gains at Asset type.
Important note

If, for a particular gain, Asset type is either Non-UK resident direct disposal or Non-UK resident indirect disposal and Disposal type is Business Asset Disposal Relief: Qualifying business disposal (QBD) or Business Asset Disposal Relief: QBD associated disposal (AD), then that gain will appear twice on the Capital Gains Tax Summary pages: once under Investors’ Relief and Business Asset Disposal Relief and once under Non-resident Capital Gains Tax (NRCGT) on UK property or land and indirect disposals.

HMRC has confirmed that this multiple declaration of the gain is both correct and obligatory.

This may result in some or all of the gain being incorrectly charged to Capital Gains Tax twice. To correct the Capital Gains Tax liability, enter an adjustment at Capital gains summary > Loss details and summaries > Losses & adjustments > Adjustments to Capital Gains Tax > Other adjustment.

Example:

2021-22

An individual has a capital gains disposal of Asset type ‘Other property’ and ‘Non-UK resident direct disposal’ and Disposal type ‘Business Asset Disposal Relief: Qualifying business disposal (QBD)’, with a net gain of £100,000. The available Business Asset Disposal Relief lifetime limit is £500,000. The gain of £100,000 is shown in both box 50 and box 52.02 on page CG3 of the Capital Gains Tax Summary pages. The tax calculation shows a Capital Gains Tax liability of £27,540, incorrectly based on total gains of £200,000.

The correct liability is £8,770, being the correct gain of £100,000 with the £12,300 annual exemption subtracted and the balance multiplied by the Business Asset Disposal Relief rate of 10%.

The difference between these liabilities, £18,770, should be entered as a negative at Capital gains summary> Loss details and summaries > Adjustments to Capital Gains Tax > Other adjustment.
Disposal type

Select as:

  • Business Asset Disposal Relief: Qualifying business disposal (QBD)
  • Business Asset Disposal Relief: QBD associated disposal (AD)
  • Not qualifying for Business Asset Disposal or Investors' Relief
Business name

This is disabled as it is not relevant for property.
Transaction details
Option Description

Enter where indicated:

  • Disposal proceeds
  • Incidental costs of disposal
  • Date of expenditure or valuation
  • Cost/ Value
  • Incidental costs of acquisition

There are two data entry columns, to enable you to enter the amounts appropriate to Acquisition and Enhancement of the asset.
Foreign tax allowable as a deduction

Enter any foreign tax to be treated as an expense.

Foreign tax claimed as a tax credit should be included in the Foreign gain section of the Reliefs & other information tab.
Non-qualifying part of gain on QBD AD

Enter the proportion of the net gain that does not qualify for Business Asset Disposal Relief.

You will only be able to enter a figure here if you have selected Business Asset Disposal Relief: QBD associated disposal (AD) at Disposal type.

Other assets and gains

Select this option if the disposal is of assets other than securities or land and property or does not relate to gains from earlier years.

Option Description
Asset type

In addition to identifying the asset as Other assets and gains, select one of the following descriptions of the asset:

  • Other gains
  • Attributed gains (where personal losses can be set off)
Date of disposal Enter the date on which the asset was disposed. This must be within the tax year.
Date of crystallising event Date of crystallising event will only appear if you select Attributed gains (where personal losses can be set off) at Asset type.
>Disposal type

Select one of:

  • Business Asset Disposal Relief: Qualifying business disposal (QBD)
  • Business Asset Disposal Relief: QBD associated disposal (AD)
  • Not qualifying for Business Asset Disposal or Investors’ Relief

A qualifying business disposal may be a material disposal of business assets, a disposal of trust business assets or a disposal associated with a relevant material disposal.
Business name

You can choose from the list of existing business names or type a new name into the box. QBD transactions with identical business names will be aggregated to a net gain for the business.

You will only be able to enter Business name if you have selected Qualifying business disposal (QBD) at Disposal type.

Transaction details

Option Description

Enter where indicated:

  • Disposal proceeds
  • Incidental costs of disposal
  • Date of expenditure or valuation
  • Cost/ Value
  • Incidental costs of acquisition

There are two data entry columns, to enable you to enter the amounts appropriate to Acquisition and Enhancement of the asset.
Foreign tax allowable as a deduction

Enter any foreign tax to be treated as an expense.

Foreign tax claimed as a tax credit should be included in the Foreign gains section of the Reliefs & other information tab.
Non-qualifying part of gain on QBD AD

Enter the proportion of the net gain that does not qualify for Business Asset Disposal Relief.

You will only be able to enter a figure here if you have selected Entrepreneurs’ Relief: QBD associated disposal (AD) at Disposal type.

Gains from earlier years

Select this option where a gain which arose in an earlier tax year has crystallised in this tax year.

Option Description
Asset type

In addition to identifying the type as Gains from earlier years, select one of the following descriptions:

  • Residential property
  • ER gains deferred from before 23 June 2010
  • Other gains
Date of crystallising event Enter the date on which the gain was crystallised. This must be within the tax year.
Disposal type

Select one of:

  • Business Asset Disposal Relief: Qualifying business disposal (QBD)
  • Business Asset Disposal Relief: QBD associated disposal (AD)
  • Not qualifying for Business Asset Disposal or Investors' Relief
A qualifying business disposal may be a material disposal of business assets, a disposal of trust business assets or a disposal associated with a relevant material disposal.
Selection of disposal type is only possible if you have selected Other gains at Asset type.
Business name

You can choose from the list of existing business names or type a new name into the box. QBD transactions with identical business names will be aggregated to a net gain for the business.

You will only be able to enter Business name if you have selected Entrepreneurs Relief: Qualifying business disposal (QBD) at Disposal type.
Transaction details

Most of the table is disabled as it is not relevant to the disposal type.

Enter Net gain where indicated.

If you have selected Entrepreneurs Relief: QBD associated disposal (AD) at Disposal type, then you will also be able to enter Non-qualifying part of gain on QBD AD, below Net gain.

Reliefs & other information

Option Description
Computation includes any estimates or valuations Tick this box if the computation includes any estimates or valuations. This will populate the relevant box on the SA108. Include details of the estimate or valuation in the Supporting information box - for guidance, see the HMRC Capital gains summary notes.
Type of claim or relief

Choose the types of claim or relief from the drop-down boxes. Some of the options listed below are only available where the disposal has resulted in a gain. Others are only available where the disposal has resulted in a loss. The claims and reliefs chosen will appear on the Capital Gains schedule.

  • Business incorporation relief. more This allows for the deferral of gains when a business is transferred to a company. HMRC Helpsheet 276
  • Dependent relative relief. more This allows relief on the disposal of a home you have provided to a dependent relative and which was occupied by the relative as a sole resident before 06/04/1988. HMRC Helpsheet 283
  • EIS deferral relief. more A gain on the disposal of an asset may be deferred against Enterprise Investment Scheme (EIS) qualifying shares issued on or after 6 April 1988. HMRC Helpsheet 297
  • EIS disposal relief. more Any gain on the disposal of EIS shares may not be chargeable to Capital Gains tax. HMRC Helpsheet 297
  • Gift hold-over relief. more This allows gains on certain assets to be deferred and passed to the person to whom the gift is made. HMRC Helpsheet 295
  • Letting relief. more This provides further relief where full Private Residence Relief is not due as the property has been let. HMRC Helpsheet 283
  • Private residence relief. more This applies to the disposal of a private residence where the conditions are met. HMRC Helpsheet 283
  • Roll-over relief. more This allows gains on the disposal of business assets to be deferred if replacement assets are acquired. HMRC Helpsheet 290.
  • Transfer to approved share incentive plan. more This allows the transfer of unlisted shares to the trustees of a SIP. HMRC Helpsheet 287
  • Unremittable gains. more If the client has disposed of an asset situated outside the UK and they were unable to transfer the gains to the UK because of exchange controls or a shortage of foreign currency then they can claim this relief.
  • VCT disposal relief. more Any gain on the disposal of VCT shares may not be chargeable to Capital Gains tax. HMRC Helpsheet 298
  • Social investment tax relief. More Social investment tax relief (SITR) is the government’s tax relief for social investment which encourages individuals to support social enterprises and helps them access new sources of finance.
  • Loss against income. More.This allows the identification of any capital losses which have been allocated against current year or previous year income.
  • Negligible value claim. MoreThis identifies those assets which are subject to a negligible value claim. HMRC Helpsheet 286.
  • Remittance basis (foreign losses). MoreThis allows for the identification of those losses arising from the disposal of foreign assets, where the remittance basis applies.
  • Other. more Select this option If you wish to claim a type of relief that is not listed. Enter the amount of the relief and add details to Supporting information
Amount Enter the amount of the claim.
Claim relief against

Where there is a gain, the Claim relief against drop-downs will enabled, with options based on the Date of disposal and Disposal type as follows:

  • Qualifying part of gain
  • Non-qualifying part of gain
Supporting information Include any additional information that might be needed. The information you enter here will be reported in the Data schedule for Capital Gains.
Foreign gains (where foreign tax credit relief is claimed)
Amount of foreign tax paid Enter the amount in sterling of the foreign tax paid under foreign tax rules where foreign tax credit relief is being claimed.
Amount of Special Withholding Tax paid Enter the amount of Special Withholding Tax paid on this disposal.
Real Time Transaction Tax return details If a Real Time Transaction Tax return has been submitted for this disposal, then enter the Return reference, Gain or loss and amount of tax, where indicated.

How do I get here?

Capital gains > Disposals

Related content

Capital Gains Summary (2021 and later)