I have been looking at the Government Guidance on CGT rates on the disposal of residential property (not the tax payers residence).
I note that a person paying higher rate income tax pays 28%. For basic rate payers, Official guidance says "if the amount is within the basic income band you'll pay 18% on residential property. You'll pay 28% on residential property on any amount above the basic tax rate".
Am I right in interpretting this to mean that any part of the gain added to taxable income but within the basic rate band (currently £50,000) is chargeable at 18% and the balance above that is charged at 28%?
For instance if the gain is £70,000 and the taxable income is £40,000 CGT is charged at 18% on £10,000 and 28% on £60,000
Thank you
Leslie Green
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