Capital Gain

The amount chargeable to capital gains tax (CGT) from gains made on the disposal of an asset. In the case of stocks and shares, the gain is the difference between the proceeds of selling the shares and the amount you paid for them adjusted for indexation. In calculating the acquisition cost, broker commissions and stamp duty can be included. In calculating the disposal proceeds, commissions and other charges incurred in the process of selling can be deducted. The calculation of Capital Gains Tax will depend on the annual exemption, the level of other gains or losses in the tax year, and taper relief.