Oh, okay, that makes sense now.RetireJapan wrote: ↑Fri Jul 05, 2024 4:59 am
Not at all.
You don't get to sell 'profit' or 'capital'. Your entire investment is deemed to have gone up in value, and you are taxed on the increase only.
So in your example the initial investment has gone up by 30%.
30% of the withdrawal would be the capital gain, and that would be taxed at 20.315%.
There is also a percentage-increase (or decrease) value shown on the investment overview page on my broker's website. I am guessing that this is the value used to calculate how much of a withdrawal will be taxed.
Thanks for the clarification.