Capital gains refers to an increase in the value of a persons assets. Capital gains is usually shown in real terms, i.e. the effects of inflation are taken into consideration.
Rising prices of shares, stocks and bonds
Capital Gains Tax
This is a tax on gains in the value of assets, when they are sold or bequeathed. Usually there is an allowance before capital gains have to be paid for.
Capital Gains tax in the UK began in 1965
Rates for Capital gains Tax
The current rate for capital gains tax in the UK is 18%
Exemptions from Capital gains Tax
- In UK 2008-09, the personal allowance is £9,000.
- Your Main home (providing you live in it)
- Lottery wins
- Income that attracts income tax
- Personal Belongings sold for less than £6,000
- Government Bonds
- You can transfer assets to a partner in a marriage without attracting capital gains. But, giving to children can attract capital gains.