capital gains tax


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capital gains tax

a tax charged on gains of a capital nature. More specifically, the charge to capital gains tax is on chargeable gains; these are gains accruing from the chargeable disposal of chargeable assets by chargeable persons. It follows from this that some disposals are chargeable disposals while others (such as a disposal on death by a testator to his executors) are not; likewise, some assets are chargeable and others are not (e.g. cash), and some persons are chargeable persons and others not (e.g. charitable trustees). Chargeable gains made by companies otherwise than in a fiduciary capacity are charged to corporation tax rather than capital gains tax. The current law has been consolidated into the Taxation of Chargeable Gains Act 1992.
Collins Dictionary of Law © W.J. Stewart, 2006
References in periodicals archive ?
When a property is sold, the seller will need to calculate the capital gains tax due on the disposal within 30 days.
Besides, the current system not only "helps block speculative trading," but also countries such as the U.K., France and Italy impose both transaction and capital gains taxes.
How much could the long-term capital gains tax rates save you?
In that case, there's no capital gains tax. Instead there's a charitable deduction for the full $50,000 FMV of the stock and a potential tax savings of $19,800--more than twice as much as with the cash gift.
Capital gains tax is paid at the rate of 18 per cent or 28 per cent depending on income, or your mother's income in this case.
Birmingham-based Dan Hartland, head of Grant Thornton's Entrepreneurial Private Client team, said: "If brought in, these new rules are likely to take effect from 6 April 2015, so if anyone has more than one residential property they should look at the potential capital gains tax implications on each one and take specialist advice now."
Sources said that rumours on enhancement of CGT ratio by 7.5 percent are afloat while on the other hand indication has been given by finance minister Ishaq Dar to some senior members of Karachi Stock Exchange (KSE) that capital gains tax and other taxes will not be scaled up in the budget on the financial year 2014-15.
"But it's not right that those who live in this country pay Capital Gains Tax when they sell a home that is not their primary residence - while those who don't live here do not.
Mr Nye said: "The Duchy of Cornwall does not pay capital gains tax because the memorandum of understanding on royal taxation establishes that capital gains tax is not payable.
Yet capital gains tax starts at 10% and never tops 28%.
Now, AFBF expanded its tax reform efforts to include the federal capital gains tax due to its effects on farmers.