Taxation (UK) · The scope of the taxation of capital gains

Chargeable Disposals and Chargeable Assets for ACCA Taxation (UK)

Updated 11 October 2026 · Fact-checked

A chargeable disposal is a sale, gift, loss or destruction of a chargeable asset by a chargeable person. A chargeable asset is any form of property unless it is exempt. To solve a question, spot the disposal, check the asset is not exempt, then fix the date of disposal.

Understand Chargeable Disposals and Chargeable Assets

Capital gains tax (CGT) taxes the profit you make when you dispose of an asset. Two things must exist before a gain is taxable: a disposal and a chargeable asset. The person making the disposal must also be chargeable, but that is covered in a separate topic.

A disposal is wider than a sale. It includes a sale, a gift, an exchange, and the loss or destruction of an asset. A gift is treated as a disposal even though no money changes hands. You use market value instead of proceeds in that case. Loss or destruction counts too, which matters when insurance money is received.

A chargeable asset is any form of property, including options, debts, incorporeal property and currency other than sterling, unless the asset is specifically exempt. Common exempt assets include cars, sterling cash and some government securities. Exempt assets are covered in their own topic, so in the exam you check this list every time.

A part disposal happens when you dispose of only part of an asset, for example selling 2 acres out of 10. Only part of the original cost can be deducted. The cost deducted is original cost × A ÷ (A + B), where A is the proceeds (or market value if a gift) of the part sold and B is the market value of the part kept.

The date of disposal decides which tax year the gain falls in. For a sale under a contract, it is the date of the contract, not the date of completion. If the contract is conditional, it is the date the condition is met. For a gift, it is the date the gift is made.

Key rules to remember

Chargeable gain outline: Proceeds (or market value) − incidental costs of sale − cost − enhancement expenditure = gain or loss; Only applies once you have a chargeable disposal of a chargeable asset.
Part disposal cost: Cost deducted = Original cost × A ÷ (A + B); A = proceeds of the part sold (market value if gifted). B = market value of the part kept at the date of disposal.
Date of disposal: sale: Date of disposal = date of contract; If the contract is conditional, use the date the condition is satisfied. Completion date is not used.
Date of disposal: gift: Date of disposal = date the gift is made; Market value is used as the proceeds.
Disposal includes: Sale, gift, exchange, loss, destruction; Check the asset is chargeable and not exempt.
CGT rates and annual exempt amount (given in the exam): Lower rate 18%, higher rate 24%, annual exempt amount £3,000; These are provided in the tax rates and allowances. You do not need them to identify a disposal.

How to solve Chargeable Disposals and Chargeable Assets questions

Use this order for any scenario asking whether a gain arises, or when and on what.

1Identify the event. Ask whether it is a sale, gift, exchange, loss or destruction.
2Identify the asset and check it is chargeable. Look for exempt items such as cars or sterling cash.
3Check the person is chargeable, usually an individual or company.
4Decide whether the whole asset or only part is disposed of. If part, apply the A ÷ (A + B) fraction to the cost.
5Fix the date of disposal: contract date for a sale, condition date if conditional, gift date for a gift.
6Place the date in the correct tax year (6 April to 5 April for individuals) or accounting period for companies.
7Choose proceeds or market value, then compute the gain if asked.
8State your conclusion clearly, with a short reason for each point.

Quickest way: Three-question check

When to use it: Use in Section A or Section B objective questions where you have about three minutes.

Is there a disposal? Sale, gift, loss or destruction means yes.
Is the asset exempt? If yes, stop: no gain and no loss.
What is the date? Contract date for sales, not completion. Then read which tax year the question asks about.

Common mistakes in Chargeable Disposals and Chargeable Assets

Using the completion date as the date of disposal for a sale.
Students think the disposal happens when the money is paid.
Fix: Use the date of the contract unless it is conditional. Then use the date the condition is satisfied.
Saying a gift is not a disposal because there are no proceeds.
Students link a disposal with receiving money.
Fix: A gift is a disposal. Use market value as the proceeds.
Forgetting that loss or destruction of an asset is a disposal.
Students look for a transfer to another person.
Fix: Treat loss or destruction as a disposal and consider any compensation or insurance received.
Treating every asset as chargeable.
Students skip the exempt asset check.
Fix: Always test the asset against the exempt list, for example cars and sterling cash.
Deducting all the cost on a part disposal.
Students forget the cost must be apportioned.
Fix: Use cost × A ÷ (A + B), where B is the market value of the part kept.
Using the cost-to-date market value for B.
Students mix up the value of the retained part with its cost.
Fix: B is the market value of the remaining part at the date of disposal.

Worked examples

Example 1

Sanjay signed a contract on 20 March 2026 to sell a painting to a buyer. Completion took place on 10 April 2026. Which tax year is the disposal in, and why?

Show the solution

A sale is a disposal and a painting is a chargeable asset unless exempt.
For a sale, the date of disposal is the date of the contract, which is 20 March 2026.
The tax year runs 6 April to 5 April. 20 March 2026 falls in 2025/26.
The completion date of 10 April 2026 would fall in 2026/27 but is not used.

Answer: The disposal is in the tax year 2025/26, because the contract date of 20 March 2026 decides the date of disposal.

Example 2

Meera bought 10 acres of land for £80,000. She sells 4 acres for £60,000. The remaining 6 acres are worth £90,000 at that date. Calculate the cost deducted and the gain, ignoring incidental costs.

Show the solution

Selling part of the land is a part disposal of a chargeable asset.
A = £60,000 and B = £90,000, so A + B = £150,000.
Cost deducted = £80,000 × £60,000 ÷ £150,000 = £32,000.
Gain = £60,000 − £32,000 = £28,000.

Answer: The cost deducted is £32,000 and the chargeable gain is £28,000, before the annual exempt amount.

Exam tips

Write the date of disposal explicitly in Section C answers. Markers give a mark for the correct contract date.
In objective questions, watch for the trap of a completion date in a different tax year from the contract date.
For part disposals, write down A and B before calculating. Do not use the cost of the remaining part as B.
When a question mentions a car or sterling cash, state that the asset is exempt and move on.
Show a short reason for each conclusion, such as 'a gift is a disposal at market value'.

Practice questions from The scope of the taxation of capital gains

Chargeable Disposals and Chargeable Assets in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

ACCA Strategic ProfessionalChargeable Persons, Assets and Disposals for CGT

Chargeable Disposals and Chargeable Assets: frequently asked questions

What is a chargeable disposal for CGT?

It is a sale, gift, exchange, loss or destruction of a chargeable asset by a chargeable person. If the asset is exempt, no gain or loss arises.

What is the date of disposal if the contract and completion dates differ?

Use the date of the contract. If the contract is conditional, use the date the condition is met. Completion date is not used for the date of disposal.

Is giving an asset away a disposal?

Yes. A gift is a disposal and you use the asset's market value as the proceeds. This can create a gain even though you receive no money.

What is a chargeable asset?

It is any form of property, unless it is specifically exempt. Cars and sterling cash are common examples of exempt assets.

How do I calculate the cost on a part disposal?

Multiply the original cost by A ÷ (A + B). A is the proceeds (or market value) of the part sold and B is the market value of the part kept.