Capital Gains Tax (CGT)
Tax you pay when you sell a business asset for more than you paid for it. The "gain" is the profit on the sale. Many jurisdictions offer a preferential rate or discount for long-held assets. Concessions may be available: talk to your accountant.
- How it's worked out
- (Sale Price − Purchase Price − Costs) × Tax Rate
- Which way is better
- Lower is betterLower is better for cash.
Written by Mandy Walker, founder of Focus on Cash. Updated October 2026. This explanation comes from the glossary inside Focus on Cash, so it matches the words you see in the app.
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