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?

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

Puneet Goel answered 2 years ago

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