CGT
Business & Finance abbreviation · Tax
| Stands for | Capital gains tax |
|---|---|
| Categories | Business & Finance |
CGT stands for Capital gains tax, a tax abbreviation.
Tax on profit from selling an asset that has risen in value, such as shares, property or a business. The UK charges it above a small annual exempt amount, at the same rates for property and other assets since late 2024, while Australia taxes gains as income with a 50% discount for assets held over 12 months.
Example: Selling the buy-to-let means a hefty CGT bill even after the annual exemption.
Usage notes
In the UK a main home is usually exempt under private residence relief, and the annual exempt amount was cut to £3,000 in 2024. CGT on UK residential property must be reported and paid within 60 days of completion. Americans usually say "capital gains tax" in full rather than abbreviating it.
Related abbreviations
More tax abbreviations
- ABN – Australian Business Number
- ACTC – Additional Child Tax Credit
- AGI – Adjusted gross income
- AMT – Alternative minimum tax
- AOTC – American Opportunity Tax Credit
- AY – Assessment year
- CP2000 – IRS Notice CP2000 (proposed adjustment to income tax return)
- CRS – Common Reporting Standard
- CTC – Child Tax Credit
- DAF – Donor-advised fund
- EA – Enrolled Agent
- EFTPS – Electronic Federal Tax Payment System