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Where Taxpayers and Advisers Meet

CGT calculation please

JOHNRE
Posts:91
Joined:Sat Feb 06, 2016 2:03 pm
CGT calculation please

Postby JOHNRE » Sun Mar 05, 2017 9:22 am

Scenario - Donna buys a flat in 2014 for £240K and sells in May 2018 for £290K. It is not her main residence and no reliefs are available. In the 2018-19 financial year she will have no taxable income (no income at all). How much CGT will she pay on this sale? Many thanks!

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: CGT calculation please

Postby bd6759 » Sun Mar 05, 2017 11:20 am

We don't know the 2018-19 rates and allowances.

Using currect rates and estimating allowable expenses, between £6000 - £6500.

You'll find the correct answer at the back of the book.

JOHNRE
Posts:91
Joined:Sat Feb 06, 2016 2:03 pm

Re: CGT calculation please

Postby JOHNRE » Sun Mar 05, 2017 9:03 pm

Thanks - am I correct in thinking that the 18% CGT rate is payable on all net gains up to the 40% tax threshold figure (currently £43,001)?

JOHNRE
Posts:91
Joined:Sat Feb 06, 2016 2:03 pm

Re: CGT calculation please

Postby JOHNRE » Sun Mar 05, 2017 9:03 pm

And 28% on any portion of the gain over this amount?


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