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
A change to adoptive architecture
Effects of global weather warming on architectural detailing, material choice and human interaction.
How big is the problem and what can we do to mitigate the effects?
Overheating guidance and tools for building designers
A number of cool guides to help with the heat.
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Architectural Technologist CPDs and Communications
CIAT CPD… and how you can do it!
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).
Ebenezer Howard: inventor of the garden city. Book review.
Airtightness Topic Guide BSRIA TG 27/2025
Explaining the basics of airtightness, what it is, why it's important, when it's required and how it's carried out.