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What is "capital gains tax"

Longman Dictionary of Contemporary English
capital gains tax
noun
EXAMPLES FROM CORPUS
▪ A major tax innovation included in the budget was the introduction of capital gains tax on stock market dealing.
▪ A valuation may on occasions be necessary because of the interaction of holdover relief and other capital gains tax reliefs.
▪ All income and tax gains from assets in the reserve will be free of income and capital gains tax.
▪ Stakeholders, like all pension funds, are also free of capital gains tax.
▪ Tax studies purporting to show that most capital gains tax is paid by higher-income individuals reflect a fundamental error.
▪ The third was the abolition of capital gains tax on unit trust portfolios in 1980.
▪ To conservatives, it means abolishing the capital gains tax, lowering the top rate on millionaires.
Wiktionary
capital gains tax

n. (context economics English) A tax levied on the profit made from selling any "capital" (i.e. non-inventory) asset.

WordNet
capital gains tax

n. a tax on capital gains; "he avoided the capital gains tax by short selling"

Wikipedia
Capital gains tax

A capital gains tax (CGT) is a tax on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a cost amount that was lower than the amount realized on the sale. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property. Not all countries implement a capital gains tax and most have different rates of taxation for individuals and corporations.

For equities, an example of a popular and liquid asset, national and state legislation often has a large array of fiscal obligations that must be respected regarding capital gains. Taxes are charged by the state over the transactions, dividends and capital gains on the stock market. However, these fiscal obligations may vary from jurisdiction to jurisdiction.