- Published: Tuesday, 09 August 2016 00:00
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.