Capital gain in the construction industry
Capital gain is a term used in the world of finance, particularly in relation to taxation.
When an asset is sold (or disposed of) at a profit (ie the difference between the sale price and the original purchase price), the seller is said to have made a capital gain and may be liable to pay capital gains tax on the profit.
Capital gains can be made on the sale of chargeable assets, including property, jewellery, works of art, vintage wines, and stocks and shares.
Capital gains example:
- An art collector sells a painting for £750,000.
- They originally bought it 10 years previously for £250,000.
- Therefore, they have made a profit (capital gain) of £500,000 and will be liable to pay capital gains tax on that £500,000 (assuming there are no allowances or exemptions in force).
In the UK, capital gains tax must be paid on gains from chargeable assets such as:
- Most personal possessions worth more than the threshold, apart from a car.
- Property that is not a main home.
- A main home if it has been let out, used for business or is very large.
- Shares that are not in an ISA or PEP.
- Business assets.
For more information see: Capital gains tax.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Spring Statement 2025 with reactions from industry
Confirming previously announced funding, and welfare changes amid adjusted growth forecast.
Scottish Government responds to Grenfell report
As fund for unsafe cladding assessments is launched.
CLC and BSR process map for HRB approvals
One of the initial outputs of their weekly BSR meetings.
Architects Academy at an insulation manufacturing facility
Programme of technical engagement for aspiring designers.
Building Safety Levy technical consultation response
Details of the planned levy now due in 2026.
Great British Energy install solar on school and NHS sites
200 schools and 200 NHS sites to get solar systems, as first project of the newly formed government initiative.
600 million for 60,000 more skilled construction workers
Announced by Treasury ahead of the Spring Statement.
The restoration of the novelist’s birthplace in Eastwood.
Life Critical Fire Safety External Wall System LCFS EWS
Breaking down what is meant by this now often used term.
PAC report on the Remediation of Dangerous Cladding
Recommendations on workforce, transparency, support, insurance, funding, fraud and mismanagement.
New towns, expanded settlements and housing delivery
Modular inquiry asks if new towns and expanded settlements are an effective means of delivering housing.
Building Engineering Business Survey Q1 2025
Survey shows growth remains flat as skill shortages and volatile pricing persist.
Construction contract awards remain buoyant
Infrastructure up but residential struggles.
Warm Homes Plan and existing energy bill support policies
Breaking down what existing policies are and what they do.
A dynamic brand built for impact stitched into BSRIA’s building fabric.