A chargeable asset is any asset that, when sold or disposed of, may give rise to a liability for Capital Gains Tax (CGT). The tax applies to the gain (profit) made on the sale or disposal of these assets, not the total value of the asset itself.
Examples of Chargeable Assets
Here are common types of chargeable assets:
- Property:
- Residential or commercial buildings.
- Land (e.g., farmland or plots of land).
- Investment properties or holiday homes.
- Shares and Investments:
- Shares in companies (e.g., publicly traded or private companies).
- Units in investment funds (e.g., unit trusts, ETFs).
- Cryptocurrency holdings.
- Valuable Personal Items (Chattels):
- Artwork (e.g., paintings, sculptures).
- Antiques or jewellery.
- Collectibles (e.g., rare coins, stamps).
- Intellectual Property:
- Patents.
- Copyrights.
- Trademarks.
- Business Assets:
- Goodwill from the sale of a business.
- Business premises or equipment sold for a profit.
- Overseas Assets:
- Foreign property or investments, subject to tax rules in the respective jurisdiction.
Not all assets are chargeable—e.g. gains on personal vehicles, your principal private residence (in most cases), or cash held in savings accounts typically aren’t subject to CGT.