The capital gains tax is applied and charged when assets or real estate properties are being disposed of. This tax concerns trustees and individuals and are not limited to companies. However, limited companies pay their corporation tax on the gains that they earn. The assets that are chargeable comprise any forms of property unless these are tax exempt specifically. These will apply to buildings and land, and business assets and shares including those of goodwill. This tax can seem to be very complicated and the rules must be given in details so that it can be understood easily.

Most people are wondering about the issue of the capital gains tax rates for those with long term investments. The tax is applied to assets held for over one year which is fixed at a lower rate when declared an income.