Discussion
Last year I used my CGT allowance by selling off just the right amount of assets to use the CGT allowance. If I'd sold more I would have had to pay CGT.
HMRC say: "CGT is payable at a rate of 20% for higher and additional rate taxpayers and 10% for others".
I'm in the lucky position that I live off various sources of income including savings and can switch between sources to allow me to use the CGT/PAYE allowances to the max.
My question is: If I make sure that in a given year I keep my PAYE income in the basic rate bracket and then sell a large amount of assets will I pay 10% CGT on the enture sale (less the allowance) or at some threschold does the 20% CGT rate kick in?
tia
HMRC say: "CGT is payable at a rate of 20% for higher and additional rate taxpayers and 10% for others".
I'm in the lucky position that I live off various sources of income including savings and can switch between sources to allow me to use the CGT/PAYE allowances to the max.
My question is: If I make sure that in a given year I keep my PAYE income in the basic rate bracket and then sell a large amount of assets will I pay 10% CGT on the enture sale (less the allowance) or at some threschold does the 20% CGT rate kick in?
tia
Ah ok thanks. So in other words the 10% CGT rate does change to 20% when your capital gain (added to your income) exceeds the £50k (ish) basic rate tax threshold.
I thought it was too good to be true that you'd pay 10% regardless of the gain.
But HMRC don't say that, they simply say the CGT is 10% if you're a basic rate tax payer. I didn't know a gain is then added to your income to move you into the 20% cgt rate.
Many thanks.
I thought it was too good to be true that you'd pay 10% regardless of the gain.
But HMRC don't say that, they simply say the CGT is 10% if you're a basic rate tax payer. I didn't know a gain is then added to your income to move you into the 20% cgt rate.
Many thanks.
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