asset

In common terms any object, tangible or intangible, that is of value to its possessor. In most cases it either is cash or can be turned into cash; exceptions include prepayments, which may represent payments made for rent, rates, or motor licences, in cases in which the time paid for has not yet expired. Most accounting bodies throughout the world would now define an asset as a source of future economic benefits obtained or controlled as a result of past transactions or events. Tangible assets include land and buildings, plant and machinery, fixtures and fittings, trading stock, investments, debtors, and cash; intangible assets include goodwill, patents, copyrights, and trademarks. See also deferred debit.

For capital gains tax purposes, an asset consists of all forms of property, whether situated in the UK or abroad, including options, debts, incorporeal property, currency (other than sterling), and any form of property either created by the person disposing of it or owned without being acquired (see chargeable assets). It must, however, consist of some form of property for which a value can be ascertained. Some assets are, however, exempt from capital gains tax.