As noted at 7.1.3, tax is charged on gains arising from the disposal of assets. This section will consider the general types of disposals which may be made by all classes of taxpayers. The special rules for companies will be covered in 7.6 and those for individuals, trustees and personal representatives in 7.7.

What is a disposal?

There is no statutory definition of ‘disposal’ in the legislation. The word has its ordinary meaning. However, this meaning is extended by certain statutory provisions, so that the following transactions are treated as disposals:

an outright sale of an asset, whether for cash or for some other consideration;

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