It would be on the full £100K less the annual exemption of £11,100 (this exemption is just for capital gains, you still have a personal allowance to use against income)
Not sure what you mean by a working example
Income less personal allowances £11,00 - whats left over liable to Income tax and National Insurance and
Capital gain less annual exemption allowance £11,100 - whats left over liable to capital gains tax
Do let know if I can assist further
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. I see my colleague has opted out.
25K of the gain will be subject to 18% tax [4.5K] and 75K at 28% [21K], total CGT due 25.5K.
I do hope that helps.
I has assumed that you had allowed the Annual Exempt Amount of 11.1K. Therefore only 75K - 11.1K = 63.9K would be at the 28% level, say 18K so some 22.4K due.
Then in addition to the Annual Exempt Amount (AEA) the following rules apply.
Take the total ownership time in months . Take the letting period in months less 18 [A] (for the last 18 months you are deemed to be in residence even if this is not the case). A / B is the proportion of the gain subject to CGT and you also are entitled to Lettings Relief (LR) up to 40K to offset any gain in addition to the AEA.
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The letters were to indicate the relevant months to calculate the proportion. 66 / 92 say 72% of the gain exposed to CGT less AEA and LR.
You have it to a 'T' to use an old expression!
25K of the gain will be subject to 18% tax [4.5K] and 23.9K at 28% [say 6.7K], total CGT due 11.2K.
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Thank you for your support.