Capital gain

1. A realised increase in the value of a capital asset, as when a security or commodity is sold for more than the price at which it was purchased.

2. Tax. The amount of the realised increase in the value of a capital asset, as calculated for tax purposes. In the UK individuals and partnerships are liable to Capital Gains Tax on their capital gains, while companies are liable to Corporation Tax on their 'chargeable gains'.

See also

• Capital asset pricing model
• Capital Gains Tax
• Chargeable gain
• Rebasing