Capital Gains Tax
a.k.a. CGT
A tax on the profit you make when you sell an asset for more than you paid.
In plain English
A tax on the profit you make when you sell an asset for more than you paid.
Capital gains tax applies to the gain, not the whole sale: sell for $1,500 something you bought for $1,000, and the tax is on the $500 profit. Rates and rules depend on your country, how long you held the asset and what it was.
Trading profits from forex, CFDs and crypto may be taxed as capital gains or as income, depending on where you live. Keep good records and check local rules; this is not something to guess.
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