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Capital Gains Tax (UK)
 

 

Capital Gains Tax is a tax on the profit when you sell or give away something (an ‘asset’) that has increased in value.

It’s the gain you make, not the amount of money you receive, that’s taxed.

Example

You bought some shares for £2,500 and sold them later for £12,500. This means you made a gain of £10,000 (£12,500 less £2,500).

If you gave the shares away instead of selling them, the gain would still be £10,000.

Reference: The Penguin Business Dictionary, 3rd edt.