Capital Gains Tax 2022-04-10T13:58:55+09:30

Capital Gains Tax

Capital gains tax is incurred by individuals, companies or trusts upon the sale of certain types of assets, for more than their purchase price – includes shares, bonds, real estate plus other items.

There are two types of capital gains, long-term gainson the profits from the sale of assets held for more than 12 months/1 year.  Short-term capital gains applies to assets held for less than a year and are taxed like ordinary income. Consideration should be gives as holding assets for longer than 12 months attracts a 50% reduction on the taxable gain.

Tax is payable on any gains when an asset is sold.  Assets that increase in value every year will not be taxed until they are sold, no matter how long you happen to hold them.

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