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Real Estate vocabulary · Fees, Costs & Taxes

Capital gains tax

Meaning in real estate, with examples

nounCommon term

In real estate, capital gains tax means: A tax on the profit made when you sell an asset, such as a property, for more than you paid for it.

In Turkish: değer artış kazancı vergisi, sermaye kazancı vergisi

How it is used

Shortened to CGT in the UK. Rules differ widely: many countries exempt or reduce the tax on your main home but charge it on second homes and investment property. Accountants talk about gains, allowances and holding periods.

Example sentences

  1. They had to pay capital gains tax when they sold their holiday flat.

  2. Their accountant explained how capital gains tax would apply to the sale.

Common collocations

  • pay capital gains tax
  • capital gains tax on property
  • capital gains allowance
  • CGT liability
  • property taxA tax that owners pay every year, usually to the local government, based on the value of the land and buildings they own.
  • transfer taxA tax charged when ownership of a property passes from one person to another, usually calculated as a percentage of the price.
  • depreciationA fall in value over time or, in accounting and tax, the way the cost of a building is spread over its useful life and deducted from income.
  • appreciateOf a property or other asset, to increase in value over time because of demand, location or improvements.

More terms: Fees, Costs & Taxes

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