Stavros wrote: »
The thread title is misleading. It is only rising to 28% for higher rate earners. It is not changing for basic rate tax payers, plus the annual exemption allowance is not changing, something that the Lib/Dems were desperate for
General description of the measure
2. Legislation will be included in Finance Bill 2010 to introduce a new rate of
CGT of 28 per cent. For individuals, the rate of CGT remains 18 per cent
where total taxable gains and income are less than the upper limit of the
income tax basic rate band. The 28 per cent rate applies to gains (or any
parts of gains) above that limit. For trustees and personal representatives
of deceased persons, the rate is increased to 28 per cent (previously
18 per cent).
uk1 wrote: »
As the gain is added to income and then adjusted for annual CGT allowances - most people disposing of a long held second homes will be paying some of the gain at 28%. So much for the promise to be "straight" with the budget.
JamesU wrote: »
Do you have a link to confirm this is how CGT will now be calculated?
11. In working out the CGT payable, taxpayers will be able to deduct losses
and the AEA in the way which minimises the tax due.
In 2010-11 X’s taxable income, after all allowable deductions and the
personal allowance, is £27,400. The upper limit of the income tax basic
rate band is £37,400. X sells an asset in May 2010 and realises a
chargeable gain of £17,000. In November 2010 X sells another asset,
realising a chargeable gain £25,100. X has no allowable losses to set
against these gains, and the AEA for 2010-11 is £10,100. Neither of the
gains qualifies for entrepreneurs’ relief.
X’s taxable income is £10,000 less than the upper limit of the basic rate
band (£37,400 - £27,400). X sets the AEA against the later gain (because
part of that gain is liable to tax at the higher CGT rate), leaving £15,000
taxable (£25,100 – £10,100). The first £10,000 of the £15,000 is taxed at
18 per cent and the remaining £5,000 is taxed at 28 per cent. The
£17,000 chargeable gain X realised in May 2010 before the change of
rates on 23 June 2010 is taxable at the old 18 per cent rate.
50,000 one-way tickets available
Plus what we already know
Including free DC comics