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Financial Terms

Capital Tax

Capital Gains Tax, commonly referred to as CGT, is a tax levied on the profit earned from selling a capital asset. This includes assets such as real estate, stocks, and businesses. The duration of ownership of the asset determines whether the tax is considered long-term or short-term. Long-term assets are held for more than a year, while short-term assets are held for less than a year. Understanding the nuances of CGT is essential for successful financial planning.
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