Chargeable gain

Chargeable gain,

Definition of Chargeable gain:

  1. Certain expenses associated with buying, selling or improving the asset, such as fees or commissions, may be deducted from the amount of the chargeable gain. For example, if a British corporation sells an office, land or securities it owns at a profit, HM Revenue and Customs (the U.K. equivalent of the IRS) categorizes the event as a chargeable gain.

  2. Capital gains tax (CGT) earned from the sale of an asset. For shares and stocks sold, chargeable gain is equal to the difference between the proceeds from the sale and the amount originally paid for them after adjusting for inflation using indexation.

  3. Chargeable gain is a British term for the increase in an asset's value between the time it is purchased and the time it is sold, which becomes subject to capital gains tax. Chargeable gains can often be offset by chargeable losses. U.K. taxpayers are also allowed reduce chargeable gains by taking inflation into account (also known as an "indexation allowance").

Meaning of Chargeable gain & Chargeable gain Definition