Is my CGT calculation correct? - USERNAME: bramber20 - 17/12/2013

Tax Question:

Taxable income ?7,000 Net CGT gain [after deducting all expenses]> say ?49,370. Am i right if i compute my CGT liability as eg:

34370-?7000=27,000 -10,600=?16,400 @ 28% =

[b] pay 4592.00 ..... ?34,370 @ 18% =

[a] pay 6186.60

Total CGT ?10778.60 if not so then pls can you show me how to calculate above scenario.

thanks.

Answer:

No, you offset the annual CGT exemption first - ie:

£49,370 - 10,600 = £38,770 Gain

Basic rate band = £34,370 - 7,000 = 27,370 * 0.18 = 4,927 Higher rate tax = 11,400 * 0.28 = £3,192 Total CGT = £8,119