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Capital gain |
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Capital gainThe gain in value that the owner of an asset experiences when the price of the asset rises, including when the the currency in which the asset is denominated appreciates. Contrasts with capital loss.Capital gainWhen a stock is sold for a profit, the capital gain is the difference between the net sales price of the securities and their net cost, or original basis. If a stock is sold below cost, the difference is a capital loss.Capital gainThe amount chargeable to capital gains tax (CGT) from gains made on the disposal of an asset. In the case of stocks and shares, your gain is the difference between the proceeds of selling the shares and the amount you paid for them adjusted for indexationIn calculating the acquisition cost, you can include including broker commissions and stamp duty. Depending on when you bought the shares, the base cost can be increased through the indexation allowance - a good thing from a tax point of view because the higher your acquisition cost, the lower your chargeable gain.In calculating the disposal proceeds, you can deduct commissions and other charges incurred in the process of selling.Whether you have to pay Capital Gains Tax on the chargeable gain will depend on whether you have already used up your annual exemption (the amount of gains you can make in any one year without paying CGT), and on the level of your other gains or losses in the tax year.Taper relief, which reduces the rate of tax you pay on gains, may also be available, depending on how long you have held the shares at the time you sell them.Similar MatchesCapital assetCapital assetA long-term asset, such as land or a building, not purchased or sold in the normal course of business. Nasdaq small capitalization companiesNasdaq small capitalization companiesA group of 2000 companies with relatively small capitalization, which are listed separately and have at least two market makers. Capital flightCapital flightThe transfer of capital abroad in response to fears of political risk. Capital allowanceCapital allowanceA tax allowance which takes account of depreciation of certain types of business assets such as plant and machinery and motor vehicles etc. Working capitalWorking capitalA company's current assets (cash, debtors, work in progress) less its current liabilities (creditors, taxes due). This capital is used by a company to run its business. Further SuggestionsCapitalismMorgan Stanley Capital International Europe, Australia, Far East Index Capital control Portfolio capital Morgan Stanley Capital International World Index Total capitalization Incremental cost of capital Issued share capital Balance on capital account Capital rationing Marginal efficiency of capital Capitalization Weighted Index Leveraged recapitalization Capital inflow Capital market efficiency Capitalization rate Capital adequacy ratio Capital loss Capital gains tax Investment Company with Variable Capital Capital depreciation Pecking order view (of capital structure) Complete capital market Capital appreciation Capital allocation decision |
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