Capital Gains Tax

testa12

testa12

testa12

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Joined
25 Jan 2006
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342
Hi,

Can anyone let me know what kind of percentages the Capital Gains Tax deducts from any profit?

Example: I buy £10,000 shares which increase to £20,000 I then want to sell to get £10,000 profit.

How much % tax would be given to Gordon on the above 10k profit?


BTW - on higher income tax rate.


CHeers
 
An example from hmrc.gov.uk.

Your taxable gains after deducting the Annual Exempt Amount for 2007-08 are £50,600.

You work out your Income Tax liability first.
Your taxable income after deducting all personal allowances and reliefs, is £20,000.

The starting rate band is £0 to £2,230 and this is fully set against your income.

Basic rate tax is charged on £32,370 (£34,600 less £2,230) and you set £17,770 (£20,000 less £2,230) of this band against your remaining income.

You use the rest of the £14,600 of the basic rate band (£32,370 less £17,770) to set against your capital gains. This is taxed at 20%. You must pay 40% tax on the balance of £36,000 of your capital gains (£50,600 gains less £14,600)

You must pay Capital Gains Tax on your gains of £50,600, worked out as follows:

£14,600 at 20% = £ 2,920
£36,000 at 40% = £14,400
Total Capital Gains Tax due = £17,320
 
40% if your already earning in the highest bracket. You're allowed £7200 per year in ISA investments (non-cash), stick it in an ISA vehicle and get a broker to trade from that, the remaining £2800 will be at 40%.
 
err anual exemption should cover just about all of it if you dont have any other capital gains you need to declare.

annual exemption is £9,600 i think for this year.

also, sorry i this is rude, but ignore the guys above- they are talking about income tx

cgt is now flat rate of 18% after annual exemption and other reliefs that may be available.
 
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