Capital Gains Tax (“CGT”)

CGT is a 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 trader’s factory) or by individuals who do not trade (e.g. sales of shares by an investor). The latter type of tax is a capital gains tax.


reference: Business Studies / Accounting. Accounts & Finance Glossary. Jim Riley BA(Hons) MBA FCA // tutor2u