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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 MatchesLong-term capitalLong-term capitalIn the capital account of the balance of payments, long-term capital movements include FDI and movements of financial capital with maturity of more than one year (including equities). Capital movementCapital movementSee 'balance of payments'. Capital appreciationCapital appreciationSee: Capital growth Financial capitalFinancial capitalThe value of financial assets, as opposed to real assets such as buildings and capital equipment. Complete capital marketComplete capital marketA market in which there is a distinctive marketable security for each and every possible outcome. Further SuggestionsPlanned capital expenditure programVenture Capital Short-term capital flow venture capital trust Capital Gains Balance on capital account Capital formation Capital intensity Capital adequacy ratio Capital infusion Capital flight Nasdaq small capitalization companies venture capital Capital inflow capitalisation Capital market imperfection Small capitalization (small cap) stocks Capital intensive Capital intensive Real capital Personal tax view (of capital structure) Paid in capital Capital account Capitalization Weighted Index capital asset pricing model |
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