Capital gains tax-free allowance

thebeak

Hello eveyone,
Is the Capital gains personal allowance £9200.00 for this tax year?
I currently pay income tax at 22%

If so does this mean I can make £9200.00 from selling shares and not pay any tax? And anything above the allowance you pay tax at 40% ?

Just sounds 2 good to be true knowing this government!

Thank you

CLAPTON

never let prejudice spoil a good story but the facts are
each person has a CGT allowance of 9,200 this year and yes that means you can make 9,200 in CG before paying any CGT.

If you are married or in a civil partnership and your partner hasn't used their 9,200, you can transfer assetts to them and they can sell them and benefit from their 9,200 too.

even more remarkable is that if your gains are more than 9,200 they are added to your income and taxed accordingly... so in your case you will initially be taxed at 22% unless/until the gains take you into the higher rate band.

guess you'll be voting for gordon now.

RayWolfe

CLAPTON wrote: »

guess you'll be voting for gordon now.

I doubt he will, the prejudice that some have is beyond understanding. Then again there are millions out there who believe every word they read in the Daily Mail! ;-)

Ems!

CLAPTON wrote: »

so in your case you will initially be taxed at 22% unless/until the gains take you into the higher rate band.
QUOTE]

The rate for capital gains tax is actually 20 % , then 40 % once you go into higher rate...

CLAPTON

thanks for that ems, you are of course correct.

PosterBoy77

Here is a question which I asked in the savings forum, which is related.

I was wondering if I could put cash into a cash fund instead of a savings account to allow the gain to be taxed as capital gains rather than income?

For example I was looking at the Gartmore Cash fund as mentioned here:

http://www.gartmore.com/uk/investors...oeics/cash.htm

The growth of the fund appears to be more or less in line with cash on deposit. As they are accumulation units I would have to sell a few units every year to effectively crystallise a gain, instead of receiving interest. In this scenario I was hoping I could make use of my annual Capital Gains Tax allowance. Would it be taxed in this way?

RayWolfe

No. The "gains" in a cash fund are interest payments, so even if you have accumulation units, any gain will be from interest. Therefor the gain, in general terms, will be taxed as income.