Annual Income £6320
After allowable deductions and Capital Gain Tax annual exemption of £10,900, net capital gain is £40,238
Can I add unused personal allowance (£9440-6320=) £3120 to basic rate band £32,010, therefore
£35,130 of gain is taxed at 18% = £6,323.40
£5,108 taxed at 28% = £1430.24
Total tax = £7,753.64
Your confirmation/clarification would be most appreciated
Joanne
Replies (2)
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spare personal allowance
is not available to set against capital gains, so if not used elsewhere, it is wasted.
Add £13 333 of divi to £6320 or other income and you have used up all of your personal allowance plus £10,213 of your basic rate band using 2013/14 rates. So more gain is taxable at 28%.