Collectives special: how to calculate CGT due on a gain

Let’s start with the basics. Capital gains tax (CGT) is a tax on the profit or gain you make when you ‘dispose of’ an asset. You usually dispose of an asset when you cease to own it; for example, if you: • Sell it • Give it away • Transfer it to someone else • Exchange it for something else • Receive compensation for it (for example, you receive an insurance payout when an asset has been destroyed) With regard to collective investments, it is the gain that is taxed, not the amount of money you receive for the asset. Example A client invests in an open-ended investment company...