Capital Gain
The profit you make when you sell an asset for more than you paid for it.
A capital gain is generally taxed when it is realised — that is, when you actually sell the asset, not while you simply hold it and watch its value rise on paper.
Gains are classified as short-term or long-term based on how long you held the asset, and the two are taxed differently. The thresholds and rates depend on the asset type and change with Budgets.
Key points
- Profit on selling an asset above its cost.
- Usually taxed only when realised (on sale).
- Short-term and long-term are taxed differently.