So, if I realised a gain of £209,600 no using last years rules I would (assuming I was a higher rate tax payer and it was a business asset held for enough years) have paid £20,000 in tax.
I sell the same asset today and end up paying tax on (5/9 x 209,600) - 9,600 at 18%. So £19,232! So the Revenue have compensated us by giving us a smaller tax bill than under the old rules! I feel there must be a catch...
Have I missed something or were they visited by several ghosts?
Gertrude Stein
Replies (2)
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Oooooooops!
Oooooops! I took the AE off before taper in my first example... Darn it!
So £17,120 (it's gone up then!)
actually you are still worse off...
the calc based on the old taper rules would show a gain of 209,600 which after taper would leave 25% chargeable, i.e. 52,400, less exemption of 9,600 leaves 42,800 liable to tax at 40% - CGT of 17,120.
(i think.......?!)