Money Doesn’t Come Without Guidance ...
The difference between the actual price and the disposable price of an asset is stated as capital gains or losses. Capital Gains Tax (CGT) or tax on capital gains – the amount more than the actual value of the disposed asset – is a part of your income tax that you pay on the profit from the sale of any asset or any kind of investment.
On the contrary, if you have capital losses – the amount less than the actual value of the disposed asset – it is carried forward and is compensated from the future capital gains, as it cannot be compensated in contradiction of the income from other sources.
There are mainly three types of assets that fall in the CGT assets category. They are:
When does Tax Gains or Losses Occur?
The capital gain or loss occurs due to different types of CGT events, the most common ones are the following: