Hello Keith, Does the figure you quoted of 28% represent a combination of the 2 tax bands (18% and 38%)? Paul
No it doesn't Paul, it was a worst case scenarion with tax at 28%.
Take your income for the tax year and add the personal allowance. The total derived less your income taxed at 20% will be the element entitled to an 18% rate, the rest will be at 28% which is likely to be the bulk of the gain which is why I gave you the worst case position.
The other danger of transferring half ownership to your wife will be that HMRC will deem it to be undertaken at current market value as at date of transfer so very little of the gain would accrue to her in any event.
Thank you for your support, Paul.
The key to the 18% is 31725. Take the amount already subject to tax at 20% and the difference between that and 31725 is the portion taxed at 18%.