For a gain or loss to be within the scope of tax on chargeable gains, there must be a chargeable disposal of a chargeable asset by a chargeable person. See C1.307, C1.301 and C1.102 respectively. This article summarises the tax treatment where a capital sum is derived from an asset.
Individuals, trustees and personal representatives are subject to capital gains tax on chargeable gains. Companies are subject to corporation tax on chargeable gains. See C1.102.
For a discussion of the computation of chargeable gains and losses, see C1.105. For the rates of tax that apply to chargeable gains, see C1.107.
Capital sums derived from assets
Where a capital sum is derived from an asset, notwithstanding that no asset is acquired by the person paying the capital sum, there is deemed to be a disposal of an asset1.
This provision applies in particular to2:
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(a)ÌýÌýÌýÌý capital sums received by way of compensation for any kind of damage or injury to assets or for the loss, destruction or dissipation of assets
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