CGT calculation - simple question

SonnyH

Hi,
I am planning on selling a house which will have a CGT liability on it (it's a BTL property).
My income is £25000. The capital gain will be £45000 so my income for the tax year will be £70000, taking me into the higher rate. My question is - do I pay 28% on the entire gain, or 18% on some, plus 28% on the rest (example below)?

e.g. 
£45000 capital gain
£25000 income

£70000 Total income for the tax year
Minus £6000 personal CGT allowance = £64000

£31,270 x 18% = £4548
£13870 x 28% = £3844

Total CGT bill £8,392

Thanks!

anselld

18% on some, plus 28% on the rest.

Presumably you have also allowed for other expenses, eg capital improvement costs, buying and selling fees, etc.

theartfullodger

Could you tell us what date sale will happen and what all the CGT rules and tax rates WILL be then please?  Otherwise a guess...

Olinda99

you pay 18% on the bit that falls into.your basic rate band and the rest at 40% 

as above you can deduct buying and selling expenses and cost of improvements. Also 6k this tax year

anselld

Olinda99 said:

you pay 18% on the bit that falls into.your basic rate band and the rest at 40% 

as above you can deduct buying and selling expenses and cost of improvements. Also 6k this tax year

That is incorrect.  Higher rate CGT is (currently) 28% for resigential property, not 40%.

Olinda99

yes sorry I meant 28 as the OP said

SonnyH

Thanks for all the replies - very helpful and much appreciated