Capital Gains Tax

Capital gains tax arises as a result of a 'chargeable event' - in the case of stock market investment, the disposal of shares at a profit. Just because a capital gain is made does not mean a tax on the gain must be paid. That depends on the personal tax position, and on whether total gains for the year are within the annual exemptions. The annual exemption per spouse are 8,800 for the 2006-2007 tax year and 9,200 for 2007-2008. The essential information required for each asset is: base or original cost, date of acquisition, date of disposal, and disposal proceeds.