Capital growth


Capital growth is the increase in the value of an asset, such as a property, over time.

Calculate the capital growth in percentage terms by dividing the increase in the value by the original purchase price. For the average annual capital growth, divide this percentage by the number of years since the purchase of the property.

If an individual sells a property that is not their primary residence, CGT is payable on the gain (the capital growth) and some deductible expenses, if the total is over their annual tax free allowance.

model of house with coins stacked in front in increasingly high piles, with a red arrow pointing upwards
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