Capital gains tax applies to profits made when selling certain assets.
Understanding how it works helps clarify when tax may be due.
What counts as a gain
A gain is usually the difference between:
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what you paid for an asset
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what you receive when you sell it
Assets it applies to
Capital gains tax can apply to:
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shares
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investment property
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business assets
Allowances
There is an annual allowance allowing some gains to be made tax-free.
A final note
This article explains how capital gains tax works, not how to reduce it.
If capital gains tax raises questions about planning, some people find it helpful to think things through before advice or action. Evoa exists for that purpose — before advice and before action.