How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4189
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

In tax year 2015 to 2016 my wife will have a total pension

Customer Question

In tax year 2015 to 2016 my wife will have a total pension annual income of £4,800. She will also have a one off capital gain which will require payment of £3460 capital gains tax. She has no other income. How much tax in total will she need to pay?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help ypu with your question. Please advise how the capital gain occured. Is the GBP 3460 actually the capital gain? If it is the tax who has done the computation? The rate of tax for Capital Gains Tax (CGT) is 18% or 28% or a combination of the two rates depending on your wife's income including the gain in the tax year in which the gain arose. Perhaps you see my difficulty at this stage. Please follow up to enable me to fully respond.
Customer: replied 2 years ago.
The gain, if we proceed with the sale,will be £30,311 in total. I calculated the capital gain amount by deducting £11,100 and then multiplying the remainder by 0.18
Expert:  bigduckontax replied 2 years ago.
Your calculation is correct. The total gain plus income is 35111, within the basic rate band so the whole CGT will be at 18%.
Expert:  bigduckontax replied 2 years ago.
Your calculation is correct. The total gain plus income is 35111, within the basic rate band so the whole CGT will be at 18%.
Customer: replied 2 years ago.
I knew the capital gain tax to be paid would be around £3460. However what I wanted was to know the the total amount she would pay for her income and capital gain.
In other words does she get any benefit from not having used all her personal allowance.
Thank you
Expert:  bigduckontax replied 2 years ago.

Well, yes and no. The personal allowance gives the tax banding and as the gain plus income is within the 20% rate band then the only tax due will be the 18% on the gain.

Please be so kind as to rate me before you leave the Just Answer site.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.