CGT = Capital Gains Tax

CGT is a tax on the profit realized from the sale of non-inventory assets, such as stocks, bonds, precious metals, real estate, and property. The tax applies to the difference between the purchase price (basis) and the selling price of the asset.

The rate and applicability of CGT vary by country and type of asset. In many jurisdictions, long-term capital gains (assets held for more than a year) are taxed at a lower rate compared to short-term gains, which are typically taxed at the individual's regular income tax rate.