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Thanks for your question, I am Sam and I am one of the UK tax experts here on Just Answer.
Assuming the sale will take place in this tax year, and you sell them all - then the first £11,00 of the gain made ( £100,500) will be tax free, leaving the balance of £89,500 liable to capital gains tax.
Capital gains tax, is either 18% or 28% or a mix of both. If your annual income for the year is in excess of £41,865 - then the capital gain rate will be 28% - If your annual income is less than £41,865, then any unused basic rate band can allow the equivalent of gain to be charged at 18% and any further gain remaining at 28%.
If you advise your annual income I can advise the gain that will arise for you. Thanks Sam
Does "annual income" number exclude the capital gain?
The whole investment and proposed sale are 50/50 with my wife. My income is way over £41,865 anyway, but hers is about £40,000 before the CG.
- I don't quite see where the gain for each of us of £44,750 (presumably your combined £89,500 is £100,500 - £11,000) comes from, since for each of us it's £50,250 - £11,000, to give a taxable gain of £39,250 each, or have I misunderstood?
- I do understand that my liability is 28% on that, but is my wife's subsequent calculation (18%) impacted by her other income being so close to £41,865?
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Thank you. It's been a very pleasant experience. Robert.