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Capital Gains Tax

What is it?

Capital Gains Tax is a tax on the profit when you sell or dispose of an asset or item, which has increased in value during the period you have had it in your possession.

By disposing of an asset, we mean when you give it away as a gift, transfer it to someone else, or receive compensation for the asset – if you have lost it, for example. Disposal can also mean to swap it for something else.

The gain that you make over this time is what is taxed. You are not taxed on the full amount of money you receive after a sale or disposition.

Read more: Capital Gains Tax

What is a limited liability?

Firstly, a liability is a company’s legal debt or other obligation, which occurs during the course of a business’s operational lifetime. These might be settled over a certain period of time by way of transfer of something of economic benefit – such as money, goods or services. 

Read more: What is a limited liability?