Difference between income tax and capital gains tax?

Question

What is the difference between income tax and capital gains tax?  Which one is more preferred by taxpayers?

Answer 1

Income Tax is what you pay on your income(earnings) and it is paid every year.Capital Tax is what you pay on your assets i-e Property,when you sell them and is paid on the profit of selling the assets.
Well from taxpayers point of view,taxpayers don`t prefer any type of tax.

Answer 2

Income tax is paid on any money you make throughout the year that the governement knows about or that you let the gov't know about.  The tax rate moves upwards the more money you make(after various deductions and exemptions).  
Capital gains (tax on money made on sale of investments-stocks, bonds, property) is taxed at the same rate as your normal income if you do not hold the property longer than a year.  

If you hold property longer than a year you get a lower rate on the capital gains you make.  15% at the moment, 10% if your in the lowest tax bracket.   

This legislation is due to run out in 2010 I believe.  At which point they may up the rate, or lower the rate; who knows?

Answer 3

Capital gains is paid on the profit made when you sell assets which were previously bought at a lower price, your main place of residence (home) is exempt.

Answer 4

The difference has already been explained.
My preference from next April will be CGT, which will be 18% instead of 40% on most disposals.