RE: Advice11 Dec 2020 00:12
CGT rates on investments The rate of capital gains tax you pay depends on your income tax band. Basic-rate taxpayers pay 10% capital gains tax. Higher and additional-rate taxpayers pay 20% capital gains tax. In the 2020-21 tax year, you can make £12,300 in capital gains before you have to pay any tax - and couples can pool their allowance. In 2019-20, you were be able to make £12,000 gains before tax. Find out more: tax-free income and allowances How do I calculate my CGT bill? Special rules apply to shares and unit trusts. There is no capital gains tax payable on shares or units held in an Isa or pension. For all other shares, you'll pay capital gains tax on any profits from a sale. If you acquire identical shares or units at different times, HMRC assumes you dispose of them in a strict order. In this case, you need to know which shares or units you are selling so that you can work out any tax bill using the correct initial value. To solve this problem, the tax rules say you must match the shares or units you are selling to the ones you bought in this order: shares or units you buy on the same day shares or units you buy within the next 30 days the rest of your shares or units – these are treated as being held in a pool and acquired at their average price.
Read more: https://www.which.co.uk/money/tax/capital-gains-tax/capital-gains-tax-on-shares-ambbh8b4kuxt - Which?