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Where Taxpayers and Advisers Meet

10% CGT for the entire gain?

Ian Wright
Posts:298
Joined:Wed Aug 06, 2008 3:23 pm
10% CGT for the entire gain?

Postby Ian Wright » Tue Mar 23, 2021 1:42 pm

A client of mine told me that capital gains are chargeable at 10% for the entire gain if their income is below £50,000. As you can imagine I thought I must be going mad. Did I miss something?

Here is what the website says...

https://taxscouts.com/capital-gains-tax-rates/

Capital Gains Tax rates in the UK for 2021/22
For the 2021/2022 tax year capital gains tax rates are:

10% (18% for residential property) for your entire capital gain if your overall annual income is below £50,270
20% (28% for residential property) for your entire capital gain if your overall annual income is above the £50,270 threshold

We all know it straddle the tax bands. Thoughts anyone?

Ian
Ian Wright
Tax Consultant
Wright Tax Consultancy Ltd
Hampshire
UK

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: 10% CGT for the entire gain?

Postby pawncob » Tue Mar 23, 2021 1:54 pm

HMRC seem to agree.
https://www.gov.uk/capital-gains-tax/rates
With a pinch of salt take what I say, but don't exceed your RDA

Ian Wright
Posts:298
Joined:Wed Aug 06, 2008 3:23 pm

Re: 10% CGT for the entire gain?

Postby Ian Wright » Tue Mar 23, 2021 1:58 pm

HMRC agree with my client or me?
Ian Wright
Tax Consultant
Wright Tax Consultancy Ltd
Hampshire
UK

Ian Wright
Posts:298
Joined:Wed Aug 06, 2008 3:23 pm

Re: 10% CGT for the entire gain?

Postby Ian Wright » Tue Mar 23, 2021 2:22 pm

Ah yes, you mean agree with me in my final sentence. I thought so. Let's hope taxscouts have a disclaimer!
Ian Wright
Tax Consultant
Wright Tax Consultancy Ltd
Hampshire
UK

Jholm
Posts:360
Joined:Mon Mar 11, 2019 4:22 pm

Re: 10% CGT for the entire gain?

Postby Jholm » Tue Mar 23, 2021 4:57 pm

I spent a few minutes on the website and noticed a lot of issues.

Apparently, if your wife gives you shares and you then sell them, you don't need to do anything!


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