A Guide to Minimising Capital Gains Tax

Capital Gains Tax (CGT) is a form of taxation imposed on profits earned from the sale of
certain types of assets. Gains are calculated by subtracting the purchase price and related
expenses (such as sales charges) from the selling price. They are generally taxed at a rate
higher than income taxes in order to discourage speculation. If you plan to sell assets that haveappreciated in value, such as real estate,stocks or bonds, it is important to beaware of CGT and how it can affect yourbottom line. Proper planning can help youminimise or even avoid CGT liabilities.