CAPITAL GAINS TAX
What does it mean? To put it simply : If you ‘dispose of’/sell an asset of something that has increased in value, you are liable to pay tax on the profit.
Asset: An asset is considered to be an item of value (tangible or intangible) that can be converted into cash. Examples of assets that are eligible for CGT include property, land, company shares, selling a business, insurance policies, foreign currency or patents.
Disposal: In the context of CGT, disposal of an asset refers not only to straightforward sales of assets, but to any transfer of ownership. Examples of disposal methods include the exchange, sale, gift or receipt of an asset.
CGT is levied only on the gain made from the asset disposal, meaning the difference between the sale proceeds and the purchase cost.