- Capital Gains Tax
(CGT) When you sell a capital asset such as a property or shares, the profit is treated as a capital gain rather than income and is subject to Capital Gains Tax. This is the difference between the base cost (i.e. the acquisition cost) and the value realised on disposal. Capital Gains Tax is charged at 40 per cent of the amount of the gain. In the period to 4 April 1998 the amount of the gain was reduced by indexation allowances. For disposals after 5 April 1998 there is to be a taper which will reduce the gain according to the length of time the asset has been held after 5 April 1998. The taper relief is more generous for business assets. Capital losses may be offset against gains and individuals have an annual exemption (₤7,200 for 2000/1).
Easyform Glossary of Law Terms. — UK law terms.
- capital gains tax
a tax charged on gains of a capital nature. More specifically, the charge to capital gains tax is on chargeable gains; these are gains accruing from the chargeable disposal of chargeable assets by chargeable persons. It follows from this that some disposals are chargeable disposals while others (such as a disposal on death by a testator to his executors) are not; likewise, some assets are chargeable and others are not (e.g. cash), and some persons are chargeable persons and others not (e.g. charitable trustees). Chargeable gains made by companies otherwise than in a fiduciary capacity are charged to corporation tax rather than capital gains tax. The current law has been consolidated into the Taxation of Chargeable Gains Act 1992.
Collins dictionary of law. W. J. Stewart. 2001.
- capital gains tax
capital gains tax (CGT)A tax on any chargeable gains made on the disposal or deemed disposal of capital assets by individuals, personal representatives and trustees in a year of assessment (which is a year ending on 5 April).Related links
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
Look at other dictionaries:
capital gains tax — n [U] a tax that you pay on profits that you make when you sell your possessions … Dictionary of contemporary English
capital gains tax — capital gains ,tax noun uncount a tax that a person or company pays on the profit you get from selling property or from money you have invested … Usage of the words and phrases in modern English
Capital gains tax — A capital gains tax (abbreviated: CGT) is a tax charged on capital gains, the profit realized on the sale of a non inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds,… … Wikipedia
capital gains tax — The tax levied on profits from the sale of capital assets. A long term capital gain, which is achieved once an asset is held for at least 12 months, is taxed at a maximum rate of 20% (taxpayers in 28% tax bracket) and 10% (taxpayers in 15% tax… … Financial and business terms
Capital Gains Tax — A type of tax levied on capital gains incurred by individuals and corporations. Capital gains are the profits that an investor realizes when he or she sells the capital asset for a price that is higher than the purchase price. Capital gains taxes … Investment dictionary
capital gains tax — A provision formerly in the income tax laws that profits from the sale of capital assets are taxed at separate (lower) rates than the rate applicable to ordinary income. The Tax Reform Act of 1986 changed the tax treatment of long term capital… … Black's law dictionary
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… … Big dictionary of business and management
capital gains tax — noun a tax on capital gains he avoided the capital gains tax by short selling • Hypernyms: ↑tax, ↑taxation, ↑revenue enhancement * * * capital gains tax [capital gains tax] … Useful english dictionary
capital gains tax — Fin a tax on the difference between the gross acquisition cost and the net proceeds when an asset is sold. In the United Kingdom, this tax also applies when assets are given or exchanged, although each individual has an annual capital gains tax… … The ultimate business dictionary
capital gains tax — n [C, U] (in Britain) a tax on the profits people make from selling investments (= things in which they have invested money), such as shares or property. * * * Tax levied on gains realized from the sale or exchange of capital assets. Though… … Universalium