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CGT calculation

Capital gains tax (CGT) can significantly affect the net return of investments, making accurate CGT tracking essential for effective portfolio management. FA system tracks CGT figures automatically, allowing you to see both the CGT due from individual transactions and the total amount accumulated since the start of the tax year. CGT is tracked only for private persons.

CGT calculation depends on the country-specific rules, and FA platform allows you to configure it accordingly.

CGT figures are also available via API – you can use them, for example, in your reports or in your customized FA Client Portal.

CGT formula

To calculate CGT, the system uses the following formulas:

  • Profit per sale (purchase lot level):

    Equation 28. 
    Profit=SoldValue-PurchaseValue-Costs\mathit{\Pr ofit}=\mathit{SoldValue}-\mathit{PurchaseValue}-\mathit{Costs}


  • Net profit for the period:

    Equation 29. 
    NetProfit=(SummedProfits−SummedLosses)−CarriedForwardLossesNet\Pr ofit=(Summed\Pr ofits−SummedLosses)−CarriedForwardLosses


  • CGT payable:

    Equation 30. 
    CGT=(NetProfit−TaxFreeAllowance)×Rate(%)CGT=(Net\Pr ofit−TaxFreeAllowance)\times Rate(\%)


Rate types

Depending on the jurisdiction, you can choose how the rate is applied:

  • Flat rate – A single percentage applied to the taxable profit.

  • Progressive by realized profit (tiered) – Different portions of the profit are taxed at different rates, depending on which bracket they fall into. Example: €30,000 taxed at 30%; anything above taxed at 34%.

  • Progressive by yearly income (brackets) – The customer’s yearly gross income determines a single rate applied to the entire taxable profit.

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