Capital gains tax

Vim_Fuego

Hi,

I need to transfer some shares to my wife so that we can use her annual exemption and basic rate tax. The gain will crystallise in this tax year and my wife is a basic rate tax payer.

I really just want to check my understanding. If I assess her 16/17 income (which is straight forward and only PAYE and ISA income) I then need to transfer enough of the gain to cover her CG annual allowance and the remainder of her basic rate allowance. The basic rate band plus her personal allowance is the income she could receive prior to any higher rate tax (is that correct?). Lastly can I just check that the tax payable is calculated at 10% for a basic rate tax payer and that the remainder of any gain will be taxed at 20% for higher rate tax payers.

Many thanks

bowlhead99

That sounds about right.

You mentioned her income is straightforward and only PAYE and ISA stuff. Make sure you don't include the ISA 'income' because that's not taxable.

Also you say "The basic rate band plus her personal allowance is the income she could receive prior to any higher rate tax (is that correct?)." You should replace [the income] with [the income plus capital gains exceeding the annual capital gains exemption]. As a 'gain' is not 'income'. But I think you meant that anyway.


https://www.gov.uk/capital-gains-tax/rates-6-april-2016 has the basics.

Vim_Fuego

Thanks, any other opinions?

bowlhead99

Vim_Fuego wrote: »

Thanks, any other opinions?

Not sure if you checked the link, but I'd assumed you were looking for facts, rather than opinions?
:beer:

bigadaj

Vim_Fuego wrote: »

Thanks, any other opinions?

Well I'm not sure that Leicester will win the league again this year.

Ill leave weather predictions.

Vim_Fuego

Yes, thanks. I'd reviewed that. Just interested in any differing opinions.....agreed it's pretty straightforward.