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Capital Gains

[ˈkæpɪtl ɡeɪnz]



Capital Gains refer to the profits created when you sell an asset. This can be subject to Capital Gains Tax in the UK.

More detail:

Capital Gains are the profits earned upon the sale of an asset such as stocks, real-estate or Cryptocurrency. This is a result of the asset increasing in price since the owner purchase it. If the asset falls in price and is then sold, it is called a Capital Loss.

If you pay a Higher Rate or Additional Tax Rate of Income Tax, you will pay a higher rate of Capital Gains Tax. This means for the 2023/24 Tax Year, a 28% rate on gains from residential property is applicable, compared with the lower rate of 18%, and a 20% rate on other chargeable assets gains, compared with the lower rate of 10%.

A Capital Gains Tax Allowance exists, so profits are only taxed above that threshold.

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