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Where Taxpayers and Advisers Meet

18 or 28 percent

kanrent
Posts:119
Joined:Tue Dec 16, 2014 8:20 am
18 or 28 percent

Postby kanrent » Wed Sep 19, 2018 6:56 am

Hi im going to sell my rented property.
Correct me if in wrong but as I understand it my earnings and my capital gain on the property will be added together to determine what rate of CGT I will pay either 18 percent or 28 percent ,
Can anyone tell me what my total earning threshold would be before I go over the 18 percent

AdamS93
Posts:268
Joined:Tue Sep 26, 2017 6:28 pm

Re: 18 or 28 percent

Postby AdamS93 » Wed Sep 19, 2018 8:35 am

What are your earnings? What is the gain? Impossible to help without numbers.

Any capital gain falling in your basic rate band will be taxed at 18% and any capital gain in excess of your basic rate band will be at 28%.

Therefore, in all liklihood some of the gain will be taxed at 18% and some at 28%.

kanrent
Posts:119
Joined:Tue Dec 16, 2014 8:20 am

Re: 18 or 28 percent

Postby kanrent » Wed Sep 19, 2018 12:53 pm

My question is What is the basic rate band how much

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: 18 or 28 percent

Postby maths » Wed Sep 19, 2018 1:48 pm

Basic rate band £nil to £34,500

Personal allowance 11,850.

Thus, if your earnings exceed 46,350 then all gain subject to 28%.

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: 18 or 28 percent

Postby AGoodman » Wed Sep 19, 2018 4:06 pm

and first deduct the CGT annual exemption of £11,700

SteLacca
Posts:448
Joined:Fri Aug 07, 2015 2:17 pm

Re: 18 or 28 percent

Postby SteLacca » Thu Sep 20, 2018 10:19 am

And take all income from the band first, Capital gains are the top slice.


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