Capital Gains Tax

Capital Gains Tax

English Legal System: Capital Gains Tax

In the context of the English law, A Dictionary of Law provides the following legal concept of Capital Gains Tax : A tax charged on gains arising from the disposal of assets. The tax due is a proportion of the chargeable gain, which in general terms is the amount by which the proceeds of the disposal exceed the original cost of acquiring the asset. If the disposal results in a loss, this may be offset against other chargeable gains in the same year or subsequent years. Assets that may be taxed in this way include stocks, shares, unit trusts, land, buildings, machinery, jewellery, and works of art. There are, however, a number of exemptions, including private motor vehicles, an individual’s *main residence, National Savings Certificates, and most personal chattels with an expected life of less than 50 years. Marketable government securities held for longer than 12 months are also exempt. Gains arising from the disposal of business assets may be offset against the cost of acquiring replacement assets. This is known as roll-over relief. Capital gains tax applies only to gains accruing since 31 March 1982. If the asset was held before this date, the gain is based on the asset’s market value on 31 March 1982. The gain will be reduced by taper relief if the asset was held for more than one year. For example, a business asset owned for three years will have the gain reduced by 50%. The first £7500 (for 2001-02) of annual gains is exempt. The rate of tax is the taxpayer’s marginal rate of income tax (10-40% in 2001-02).

Capital Gains Tax

Hierarchical Display of Capital gains tax

Finance > Taxation > Tax on income

Meaning of Capital gains tax

Overview and more information about Capital gains tax

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Translation of Capital gains tax

Thesaurus of Capital gains tax

Finance > Taxation > Tax on income > Capital gains tax

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