Capital Gains Tax Allowance

[Puggit]

I work, Mrs Puggit earns a little, not normally enough to hit the threshold to start paying income tax. I was about to transfer some shares to her, so she could sell them and lower the tax amount. Having a conversation with someone, they pointed out I have a Capital Gains allowance, I believe it's £11k?

Does anything change this allowance (ie earning over £100k can reduce my tax free allowance). The gains on the shares would be less than £11k.

Thanks!

[uknick]

The allowance is unrelated to income.

The rate of CGT payable on any amount over the allowance is.

[Puggit]

uknick said:

The allowance is unrelated to income.

The rate of CGT payable on any amount over the allowance is.

Thanks, yep I was aware that 40% tax payers pay 20% rate

[Eric Mc]

Has Mrs P considered transferring any of her unused personal Income Tax allowance to you?

[Puggit]

Eric Mc said:

Has Mrs P considered transferring any of her unused personal Income Tax allowance to you?

Eric, I'm a powerfully built company director.

(Ok, I'm not, but I earn over £43k - thanks for the tip though)

[williaa68]

Depending on how many you have and what dividends you expect, if you have other shares you may want to transfer them to the mrs to hold not to sell. While some of the dividend will be tax free, if you are over the threshold (£5k i think) then it will be better taxed in her hands than yours. That goes of pretty much any income producing investment that isnt in a tax efficient wrapper like an ISA or pension (note she can still make small pension contributions and claim tax relief even if she has no income). Our tax system generally disadvantages those with one income rather than two of similar size but you can tweak things a bit with some careful planning.