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

Capital Gains in the above question equals £95,000

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