Understanding Capital Gains Tax (CGT)

For financial advisers only

On completion of this module you should be able to:

  1. explain when a capital gain may arise
  2. demonstrate how tax is calculated on capital gains
  3. determine when relief may be available to reduce or defer capital gains
  4. describe the share matching rules

Introduction

Clients may be subject to capital gains tax when they dispose of certain assets. It is therefore vital for advisers when dealing with those assets to fully understand when capital gains may arise and how they will be taxed. The use of reliefs, exemptions and allowances can be a valuable planning tool which may allow clients to defer gains or minimise the tax they will pay on them.

This module is split into three sections and each section should take between 15 to 30 minutes to complete. Once you have completed all the sections there is a short self-assessment quiz to check what you have learned and a 60 minutes CII/PFS accredited CPD certificate can be claimed.

The first part of this module covers when disposals for CGT may arise, how gains are calculated, the treatment of losses and the key dates for the reporting and payment of tax.

Please read our Technical Guide – Capital gains tax before moving on to the next part of this module.