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Use the Chargeable gains calculation schedule template to calculate the chargeable gain or allowable loss on the disposal of a capital asset. For each asset you record whether the disposal is to a connected or unconnected party, choose the tax treatment, deal with assets held at 31 March 1982, and let Silverfin apply indexation allowance to December 2017.

Table of contents 

When should I use this template?

Use it where the company has disposed of a chargeable asset — for example land and buildings, or shares — and you need to compute the gain or loss for corporation tax.

What do I need to set up before I start?

A business type must be selected in the Business type section of the Return information template. If none is selected, the template shows a warning and cannot calculate.

How do I work through each asset?

To add an asset, complete its details — description, acquisition and disposal dates, proceeds and allowable costs — together with the following controls:

  • Counterparty — a dropdown: Unconnected or Connected. This determines whether the gain or loss is carried to the Unconnected or the Connected chargeable gains summary. Connected-party losses are restricted to gains on disposals to the same connected person.
  • Tax treatment— a dropdown:
    • Taxable / Allowable — an ordinary chargeable gain or allowable loss.
    • Substantial shareholding exemption (TCGA 1992 Schedule 7AC) — the gain on a qualifying disposal of shares is exempt.
    • Intra-group transfer rules (TCGA 1992 s171) — the asset is transferred within a group on a no gain / no loss basis.
  • Asset held at 31 March 1982? — a dropdown, Yes / No. Selecting Yes reveals a market value at 31 March 1982 field, and the gain is computed using the rebasing rules (the "Pre 1982" column appears).
Asset descriptions must not contain special characters. The template warns you if they do, because the description is used in the return / iXBRL output.

How does the calculation work?

For each asset, Silverfin calculates proceeds less allowable costs to give the unindexed gain, then applies indexation allowance to December 2017 using the built-in indexation coefficients. Indexation is frozen at December 2017 and cannot turn a gain into a loss. Where the asset was held at 31 March 1982, the market value entered is used under the rebasing rules.

What flows through to the rest of Corporation Tax?

Gains and losses calculated here feed the Unconnected chargeable gains summary or the Connected chargeable gains summary (according to the Counterparty selected), which in turn feed the chargeable gains figure in the tax computation and the CT600.

Where does the data come from?

  • The asset disposals and their details are entered here; the indexation coefficients (to December 2017) are built into the template, so indexation is calculated automatically.
  • The business type comes from Return information.
  • The gains and losses calculated here flow out to the Unconnected or Connected chargeable gains summary according to the Counterparty selected on each asset.

Frequently asked questions

How do I direct a disposal to the connected or unconnected summary?

Set the Counterparty dropdown to Connected or Unconnected; the asset flows to the matching summary.

Does the template calculate indexation allowance?

Yes — to December 2017, using the built-in coefficients. Indexation is frozen at December 2017 and cannot create or increase a loss.

How do I deal with an asset held at 31 March 1982?

Set "Asset held at 31 March 1982?" to Yes and enter the market value at 31 March 1982; the rebasing rules then apply.

How do I exempt a share disposal or handle an intra-group transfer?

Use the Tax treatment dropdown — substantial shareholding exemption (Sch 7AC) for a qualifying share disposal, or intra-group transfer rules (s171) for a no gain / no loss transfer.

Why can I not use special characters in the description?

The description is used in the return / iXBRL output; the template warns you to remove any special characters.