For CGT am I a 20 or 40% taxpayer? 11 November 2022 at 12:34PM edited 11 November 2022 at 12:35PM in Cutting tax 3 replies 165 views

MEM62

I am selling my rental property.  It was my home for almost 30 years but has been rented for the past 6 - so I will have a CGT liability.  My question is, when calculating CGT am I a 20 or 40% taxpayer?  My salary and company vehicle put me into the 40%.  However, when completing my self-assessment, I only end up paying tax at 20% for the year when my pension contributions, which are made post-tax, are declared and taken into account.  So, for CGT am I a 20 or 40% taxpayer?         

Jeremy535897

See https://www.gov.uk/capital-gains-tax/rates

purdyoaten2

MEM62 said:

I am selling my rental property.  It was my home for almost 30 years but has been rented for the past 6 - so I will have a CGT liability.  My question is, when calculating CGT am I a 20 or 40% taxpayer?  My salary and company vehicle put me into the 40%.  However, when completing my self-assessment, I only end up paying tax at 20% for the year when my pension contributions, which are made post-tax, are declared and taken into account.  So, for CGT am I a 20 or 40% taxpayer?         

Work out what remains of your 20% (basic rate) band. The result represents the amount of the gain that will be taxed at 18%. The remainder will be taxed at 28%.

MEM62

Thanks for the feedback guys.  Much appreciated.