|
|
Return to capital |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Return to capitalSame as the rental price of capital. Since capital can only be measured in monetary units, the rental price is, say, dollars per dollar's worth of capital per unit time, and it therefore has the form of a rate of return like an interest rate.Similar MatchesLong Term Capital GainLong Term Capital GainGain on the sale of a capital asset which has been held for a specified time or longer. Long term capital gain is taxed at a special rate and not as ordinary income. CapitalCapitalIn the context of mortgages, capital describes the original sum borrowed as distinct from interest required on that loan. A repayment mortgage involves repayment of a little of the capital interest each month. Capital gains taxCapital gains taxCapital gains tax arises as a result of a 'chargeable event' - in the case of stock market investment, the disposal of shares at a profit.Just because you make a capital gain does not mean you necessarily have to pay tax on the gain. It all depends on your personal tax position, and on whether your total gains for the year are within the annual exemptions. The annual exemption per spouse in the tax year 2002-2003 is £7,700, rising to £7,900 for the 2003-2004 tax year.The gain you make beyond your annual exemption is added to any other income you may have and taxed as additional income at your marginal rate, be it 20% or 40%.Whatever the eventual tax position, it is important to keep records that enable you to calculate the gain on the sale of an asset, and ideally your record-keeping should be in a form that lends itself to completing your Tax Return.The essential information you need for each asset is:Base or original costDate of acquisitionDate of disposalDisposal proceedsWhen you have this information you are in a position to take advantage of indexation, taper relief, losses and your annual exemption. Capital sharesCapital sharesOne of two types of shares in a dual-purpose investment company, which entitle the holder to the appreciation or depreciation in the value of a portfolio, as well as the gains from trading in the portfolio. Antithesis of income shares. Capital gainsCapital gainsProfits an investor makes from the sale of real estate or investments. Further SuggestionsCapitalCapital market imperfection Capitalism Complete capital market Net working capital Opportunity cost of capital Capital account surplus Free capital markets loan capital Capital growth capital asset pricing model venture capital Capital Incremental cost of capital Pecking order view (of capital structure) Net capital requirement Capital appreciation share capital issued share capital paid in capital capital employed Capital flight Short-term capital flow Other capital Capital gain |
|
|
|