CGT rate-Share sale

[Roytheboyo]

Hello all,

Please consider the following scenario:

PAYE salary for year 28k
Taxable gain on sale of shares in same year 10K

Question: As CGT is paid at the 'marginal' rate, which is defined (by some texts at least) as the tax rate you will pay on your next euro of income, does this mean that the 10k is subject to 20% CGT (minus allowances etc)and not 42% even thought the 29k threshold is breached?

Seems to make sence, but then if i realised 100k on gain of shares would this notbe a way of reducing the CGT payable, ie it would make no sence to earn over 29k.

Thank you all

 

[rainyday]

As CGT is paid at the 'marginal' rate

No - its not. CGT on share sales and most other assets is paid at a flat rate of 20% regardless of your income (subject to annual CGT allowance of €1270)

 

[oilean]

Roy,

have you been checking UK tax rules

I am not certain but that sounds like ther system

Stu

 

[Roytheboyo]

Even Better!

Hey,
Thats even better news. Saves a lot of hastle. I had looked it up on a site that was probably based in UK (forget which site now).
Cheers rainyday and oilean, much appreciated.