working out your tax bracket for CGT

ANGLICANPAT

When working out whether you pay CGT on the sale of an investment property at the 18% or 28% rate , my understanding is that you add up your total income for the year, and add to it your CGT taxable amount after your 11k cgt allowance is deducted, and if it totals over £31,785 , you pay CGT at 28%.



I am not clear however ,whether your 'CGT taxable amount' is the amount left after JUST the personal cgt allowance is deducted but BEFORE letting relief and PRR are applied ,or after all three deductions have been made leaving the ACTUAL amount you would pay. Can anyone advise please?

CLAPTON

ANGLICANPAT wrote: »

When working out whether you pay CGT on the sale of an investment property at the 18% or 28% rate , my understanding is that you add up your total income for the year, and add to it your CGT taxable amount after your 11k cgt allowance is deducted, and if it totals over £31,785 , you pay CGT at 28%.



I am not clear however ,whether your 'CGT taxable amount' is the amount left after JUST the personal cgt allowance is deducted but BEFORE letting relief and PRR are applied ,or after all three deductions have been made leaving the ACTUAL amount you would pay. Can anyone advise please?

the PROFIT is taxed
i.e. the amount after you deduct the PRR and letting relief and the cgt allowance

ANGLICANPAT

Thanks, thats what I had thought too , so will have to check back with accountant as he has not counted in those 2 allowances I mentioned , before adding the taxable amount figure to income, and so has come up with 28% , so need to understand why.

CLAPTON

if you wish to post up the figures we could calculate the answer for you

are you sure he is a qualified accountant?