Capital gains has important differences to wealth tax. It’s a tax on net-wealth-disposed-of-in-a-tax-year, or perhaps the last couple for someone with an accountant.
So your proverbial founder isn’t taxed a penny until they dispose of their shares.
Someone sitting on a massive pile of bonds won’t be paying capital gains tax, but rather enjoying the interest on them.
Capital gains has important differences to wealth tax. It’s a tax on net-wealth-disposed-of-in-a-tax-year, or perhaps the last couple for someone with an accountant.
So your proverbial founder isn’t taxed a penny until they dispose of their shares.
Someone sitting on a massive pile of bonds won’t be paying capital gains tax, but rather enjoying the interest on them.