Question

In: Economics

Capital Gains

A house in the UK was bought for £330,000 in 2005, and sold for £435,000 in 2020. What is the Capital Gains?

Solutions

Expert Solution

Wealth changes when the value of the assets one owns changes. Capital Gains represets in increase in the value of existing assets. 

 

selling price of an asset = £435,000

purchase price of an asset = £330,000

 

Capital Gains =

selling price of an asset – purchase price of an aset

 

Capital Gains  = £435,000 - £330,000

Capital Gains = £95,000

 


Answer

Capital Gains in the above question equals £95,000

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