Capital Gains Tax (CGT) is a tax on the profit realized from the sale of certain types of assets, occurring at different rates depending on asset type and overall taxable income. This tax plays a significant role in tax planning for investors and businesses.
Cost basis refers to the original price of an asset and is fundamental in determining depreciation as well as capital gains or losses. Typically, it is the purchase price, but in cases of inheritance, it is the market value of the asset at the donor's death.
Relief available to sole traders, partnerships, and companies making losses, as adjusted for tax purposes.
