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Where Taxpayers and Advisers Meet

Capital gains tax rate for someone with variable pay

langtonbrow
Posts:66
Joined:Tue Mar 10, 2009 1:52 pm
Capital gains tax rate for someone with variable pay

Postby langtonbrow » Mon Sep 09, 2024 4:34 pm

Hello to all. Quick question. Could I sell an asset liable to CGT and subsequently increase salary sacrifice through the remainder of the year, effectively reducing my CGT tax rate to basic rate tax? If that is theoretically possible how would it practically work, would it be via a rebate once self-assessment is completed?

bd6759
Posts:4352
Joined:Sat Feb 01, 2014 3:26 pm

Re: Capital gains tax rate for someone with variable pay

Postby bd6759 » Mon Sep 09, 2024 9:37 pm

The correction would be via self-assessment - if you are required to complete one.

D&C
Posts:174
Joined:Mon Nov 25, 2019 11:35 pm

Re: Capital gains tax rate for someone with variable pay

Postby D&C » Mon Sep 09, 2024 11:14 pm

What correction?

The op hasn't specified what type of asset is being sold so reporting the gain may be dealt with via a Self Assessment return.

And there is nothing you can claim for in relation to salary sacrifice pension contributions as these are
employer
contributions.

The tax benefit comes from having less pay to be taxed (and have NI deducted) in the first place. And corresponding reduction in the rate band used on the income tax liability.

bd6759
Posts:4352
Joined:Sat Feb 01, 2014 3:26 pm

Re: Capital gains tax rate for someone with variable pay

Postby bd6759 » Wed Sep 11, 2024 8:35 am

What correction?

The op hasn't specified what type of asset is being sold so reporting the gain may be dealt with via a Self Assessment return.
He said “rebate” suggesting he will have paid tax in year - I inferred this to be a residence CGT return.

If he doesn’t know exactly how much of the gain will be charged at the lower rate at that time, it will sort itself when he does his self-assessment. Salary sacrifice can affect the rate bands.


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