capital gains tax


capital gains tax
= CGT
A UK tax on capital gains Most countries have a form of income tax under which they tax the profits from trading and a different tax to tax substantial disposals of assets either by traders for whom the assets are not trading stock (e. g. a trader's factory) or by individuals who do not trade (e. g. sales of shares by an investor). The latter type of tax is a capital gains tax. In the UK, capital gains tax is charged on the total amount of chargeable gains accruing to a person in a fiscal year after deducting any allowable capital losses The rate of tax is 10%, 20%, or 40% depending on the taxpayer's marginal rate of income tax. Taper relief may be available to reduce a chargeable gain, as may indexation if the asset was purchased before 6 April 1998.

Big dictionary of business and management. 2014.

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