CAT / FIA FTX Syllabus C. Income Tax Liabilities - Income and capital profits/losses - Notes
Income and capital profits/losses
Profits
Income tax
- Income profits usually involve recurring receipts
- Income tax is charged on receipts which might be expected to recur (such as weekly wages or profits from running a business)
Capital gains tax (CGT)
- Capital profits are usually one-off gains
- CGT is charged on one-off gains (for example from selling a painting owned for 30 years).
Losses
Losses made in relation to income sources (such as a business or letting out a property) can usually only be set against income profits
Capital losses can only be set against capital gains
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Syllabus C. Income Tax Liabilities
C1. Introduction to personal taxation
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Elements of a personal income tax computation
Syllabus C. Income Tax Liabilities
C1. Introduction to personal taxation