Determine whether your asset disposal should be treated as a capital gain or ordinary income.
Capital Gain Indicators:
• Investment purpose at acquisition
• Long-term holding (investment mindset)
• Passive ownership/minimal activity
• Infrequent transactions
• 50% discount if held >12 months
Revenue Indicators:
• Profit-making scheme/business
• Short-term holding periods
• Frequent buying and selling
• Business-like operations
• No CGT discount available
The type of asset can influence whether gains are capital or revenue.
💡 Some assets are more commonly held for investment (capital) vs trading (revenue).