What constitutes a business asset for CGT purposes?

A business asset for Capital Gains Tax (CGT) purposes generally includes any fixed asset owned by a business that can appreciate in value. This definition encompasses various types of fixed assets, such as land, buildings, equipment, and certain intangible assets, all of which can increase in value over time. When a business disposes of these assets, any gain realized from the increase in value is subject to CGT.

Other options do not meet the broader definition of business assets for CGT purposes. Inventory held for resale is not classified as a capital asset in this context; instead, it is treated as a current asset and accounted for differently under taxation rules. Cash held in business accounts is also not considered a capital asset; it is regarded as a liquid resource for the business rather than an asset that appreciates in value. Personal property of the owner falls outside the scope of business assets related to CGT, as it pertains to the individual rather than the business entity itself.