This description isn't quite right, though you're mostly in the right direction.
If you buy a share of stock (or any other asset) you don't pay any taxes until you sell it (or you die) and realize the income. That income is called a Capital Gain and is taxed either at Short Term or Long Term rates. Short Term gains (under 1 year) are (more or less) taxes just like regular income. Long Term gains (over 1 year) are taxed at a lower rate.
There are generally pretty good reasons for the different rates and the US is not at all unusual in this way. Virtually all countries have similar setups. The UK (where OP is from) does this.
It's also worth nothing since the blog author was talking about real estate that rent collected from residential real estate is NOT a capital gain, but is ordinary income.
If you buy a share of stock (or any other asset) you don't pay any taxes until you sell it (or you die) and realize the income. That income is called a Capital Gain and is taxed either at Short Term or Long Term rates. Short Term gains (under 1 year) are (more or less) taxes just like regular income. Long Term gains (over 1 year) are taxed at a lower rate.
There are generally pretty good reasons for the different rates and the US is not at all unusual in this way. Virtually all countries have similar setups. The UK (where OP is from) does this.
It's also worth nothing since the blog author was talking about real estate that rent collected from residential real estate is NOT a capital gain, but is ordinary income.