Personal Tax: Capital Gains

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Say if you sold some shares, what is the capital gains tax payable on the gain? Do you look at the chargeable part of the gain being before or after Taper Relief? I.e. is it: Proceeds less cost = chargeable gain; or is it: Proceeds less cost less taper relief = chargable gain? Can anyone help or give a better illustration? Thanks.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Personal Tax: Capital Gains

    Proceeds less cost, then apply taper relief, then annual exemption. The remaining gain is treated as the top slice of what is taxable i.e. add up all income first, then, if any basic rate availibility is left, tax the gain at 20%, then at 40%.

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