Accountancy Question - Income Tax & CGT
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accountantpete
OAP
Indexation allowance and taper relief were abolished years ago - If I remember correctly there was a short period when you could still claim indexation allowance for older assets but this has long since gone.
The CGT amount is calculated with reference to your total income after allowances - ie if you are a lower rate taxpayer then it's 10% ( so you still pay the same CGT if you earn £5k or £30k on gains over £11,700).
NB - The total income includes the net gain after the £11,700 allowance - so if you earned £20k and had a net gain of £12k then total income is £32k - ie lower rate tax
The CGT amount is calculated with reference to your total income after allowances - ie if you are a lower rate taxpayer then it's 10% ( so you still pay the same CGT if you earn £5k or £30k on gains over £11,700).
NB - The total income includes the net gain after the £11,700 allowance - so if you earned £20k and had a net gain of £12k then total income is £32k - ie lower rate tax
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