Capital gains tax applies to profits made when selling certain assets.
Understanding how it works helps clarify when tax may be due.
A gain is usually the difference between:
what you paid for an asset
what you receive when you sell it
Capital gains tax can apply to:
shares
investment property
business assets
There is an annual allowance allowing some gains to be made tax-free.
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.