CGT query

[Ecosseven]

Afternoon all,

Quick question on CGT and property. The current rate for CGT for property is 18% for basic rate tax payers and 24% for higher rate and additional rate taxpayers.

Is the gain treated as income in the tax year the gain is realised for the purposes of calculating the CGT due?

For example if I make a gain of £100k on the sale of a property then even if I had little or no other income in that tax year I would still pay CGT at 24%?

Thanks in advance.

[PM3]

Yes its counted like " income" so you pay some at higher rate if you gains+Income take you over the income tax threshold

https://taxscouts.com/calculator/capital-gains-tax... very easy to use


zero income , 100K gain looks like this

You pay no CGT on the first £3,000 that you make
You pay £6,786 at 18% tax rate for the next £37,700 of your capital gains
You pay £14,232 at 24% tax rate on the remaining £59,300 of your capital gains

Tax = £21,018

[Ecosseven]

Thanks for the reply.

[Eric Mc]

Even though CGT has its own specific rates of tax, to find out what bands the gain is going to be split between, you also have to take into account your "normal" income in the year - salary, self employed/partnership profdits, interest, dividends etc

[Ecosseven]

Eric Mc said:

Even though CGT has its own specific rates of tax, to find out what bands the gain is going to be split between, you also have to take into account your "normal" income in the year - salary, self employed/partnership profdits, interest, dividends etc

Thanks Eric.

I suspect it won't make much difference as due to the size of the gain the vast majority will fall within the higher rate band. I may wait until I retire to sell the property and take no money from my pension in that tax year.

[markh1973]

Panamax said:

Ecosseven said:

The current rate for CGT for property is 18% for basic rate tax payers and 24% for higher rate and additional rate taxpayers.

For example if I make a gain of £100k on the sale of a property then even if I had little or no other income in that tax year I would still pay CGT at 24%?

There is no 24%. The rates are 18% and 28%

24% came in on the 6th April this year to replace 28%

[Panamax]

markh1973 said:

24% came in on the 6th April this year to replace 28%

Thanks, I'd missed that one.
Whether St Rachel of Reeves will leave it there we shall find out in due course....

[Eric Mc]

That didn’t register with me until a while ago.
The Conservatives should have made much more of that in their election campaign.