Capital Gain Tax is a tax applicable on the assets, which was acquired on or after 20th September 1985.
A capital gain or loss is the difference between cost of getting an asset and funds received on disposed.
If you made a capital loss in financial year then you cannot claim against income. However, it can be claimed to reduce a capital gain made in the same financial year. If capital loss is greater than capital gain then capital loss is carried forward for the future years and will be deducted against capital gain.
Common example of CGT is real estate or shares from where taxpayer makes capital gain or loss. CGT is also applicable on intangible assets such as business goodwill.
There are some assets that are exempted from CGT examples are as below
CGT is also does not apply to depreciable assets used solely for taxable purposes such as business equipment.
Small businesses do get concessions when they sell the assets that they hold for more than 1 year. They get 50% discount and same implies to individuals as well.
Call Tax Accountants Lynbrook at 1300 300 106 for further information.