Capital Gain & Employment

nealnomoney

Hi hope some1 can help,

If i sell a house and have a capital gain, do i add the gain to my employment income and then tax it through the bands ie. 10% 22% & 40% or do i just keep it seperate altogether??

nealnomoney

yes im ok with the gain, do i take the personal allowance off as well as the annual allowance of 8800? Also if the taxable gain was 80000 between 3 people can i divide this in 3 and take personal allowance and annual exempt amount of each?

Thanks in advance!

Elaine_Wilson

One point to add to the answer from Jimmo. Once you have added the gain to your other income any part of the gain which lies within the basic rate band is only taxed at 20% not 22%.

You cannot offset your personal allowance against the gain. The annual exemption takes the place of this. If your employment income is less than the personal allowance then you start calculating the tax on the gain with the 10% band.

If the gain is on a jointly held asset then you are only taxed on your share. Each "partner" can then set of the annual exemption (but not personal allowance) against their share providing it has not been used on another gain.

nealnomoney

Thanks very much for that!! One more question...... once i have worked out exact figure that i owe, do i deduct the tax that i paid in employment off this?