A house in the UK was bought for £330,000 in 2005, and sold for £435,000 in 2020. What is the Capital Gains?
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
Capital Gains in the above question equals £95,000