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Debate House Prices


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capital gains tax?? is the panic here??

13

Comments

  • Gorgeous_George
    Gorgeous_George Posts: 7,964 Forumite
    Part of the Furniture Combo Breaker
    Thrugelmir wrote: »
    There is a reasonable possibility that CGT will rise from its present 28% in the next budget.

    28% is very convenient for reaching 40%, with 2 further steps of 6% in successive years.

    It could fall to 0% by 7% cuts in each of 4 years.

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Gorgeous_George wrote: »
    It could fall to 0% by 7% cuts in each of 4 years.

    GG


    Maybe so....

    My hunch is that the deal has been struck already, as to the tax changes that will be implemented to fund the increase in personal tax allowance to £10k. CGT is part of that equation.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Thrugelmir wrote: »
    CGT is calculated by adding the profit subject to CGT, together with gross taxable income in that tax year. Any profit in excess of the basic rate tax threshold is then taxed at the higher rate of CGT of 28%. Anything below at 18%.
    would there be any allowances here... PPR maybe??
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 1 July 2010 at 9:27PM
    chucky wrote: »
    would there be any allowances here... PPR maybe??

    "profit subject to CGT" - ;)

    In the same way that your gross monthly pay has deductible tax allowances before being subject to income tax .
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    edited 1 July 2010 at 9:42PM
    Thrugelmir wrote: »
    "profit subject to CGT" - ;)
    Private Residence Relief = where a house has at any time ever been your PPR, then the gain relating to the previous 36 months of ownership will be free of tax when selling that home.

    it's not as straight forward for people to have to pay CGT.
    many people will not be liable to it at all.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    chucky wrote: »
    Private Residence Relief = where a house has at any time ever been your PPR, then the gain relating to the previous 36 months of ownership will be free of tax when selling that home.

    it's not as straight forward for people to have to pay CGT.
    many people will not be liable to it at all.

    I'm not sure what point you are attempting to make.

    Shall I repeat myself "Profit subject to CGT".

    All reliefs and allowances (including annual exemption) are deducted before CGT is calculated.
  • Dirk_Rambo
    Dirk_Rambo Posts: 387 Forumite
    Chaos_A.D. wrote: »
    I'm nobody's sockpuppet and seeing has you're a noob who joined in Sept 2009, you wouldn't have a clue:D. PM some of the posters who joined a few years ago and they may fill you in. ;)
    i can confirm that chaos a.d. is definitely no sock pupet.
  • new_home_owner_3
    new_home_owner_3 Posts: 1,191 Forumite
    Dirk_Rambo wrote: »
    i can confirm that chaos a.d. is definitely no sock pupet.

    oh can you now and who are you?????:D:p
  • Dirk_Rambo
    Dirk_Rambo Posts: 387 Forumite
    mr Dirk rambo but you can just call me dirk
  • Dirk_Rambo
    Dirk_Rambo Posts: 387 Forumite
    brit1234 wrote: »
    The house price crash has resumed, thats what happened.
    to be honest it never really stopped round near where i live. its been downhill all the way
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