profit liable to capital gains tax a profit from the sale of an asset that is subject to capital gains tax.
is treated as an equity issue and is disregarded for tax. In the latter case it is in principle taxable as an embedded derivative. If so, a chargeable gain or allowable loss will arise when the company pays cash to the holders. The gain or loss is determined by a formula based on the difference between
By Roger Lister
in acquiring the seller’s company. The assets will be acquired at the current market value, which will give them a high base cost in terms of capital gains tax. The purchase will, therefore, attract maximum capital allowances. The seller can obtain certain reliefs against capital gains tax. Overall, a
Definitions of ’chargeable gain’ and meaning of ’chargeable gain’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’chargeable gain’ and other financial terms with our online QFINANCE Financial Dictionary.