RE: CGT under review11 Nov 2020 15:46
CGT = separate pot to income tax (uses the £50k thresholds in conjuction with income tax)
Example
Income tax Earnings say £40k
Capital Gain (after costs) £100k
Total income £140k
Tax
Income tax via PAYE as normal
CGT =
£12,300 @ £Nil
£50000 - £40000 (income tax) = £10000 @ 10%
£100000 - £12,300 - £10,000 = £77,000 @ 20%
or Share it with the wife (who has no income)
CGT =
£24,600 @ £Nil
£10,000 (as above) @ 10%
£50,000 (wife) @ 10%
£100,000 - £24,600 - £10,000 - £50,000 = £15,400 @ 20%