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Old 4 May 2018, 22:23 (Ref:3819547)   #11
MGDavid
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Originally Posted by morninggents View Post
I should have pointed out that the sale of your items would fall in the area of Capital Gains Tax (CGT), and not Income Tax, subject to the provisos I mentioned in my earlier post. However, I think I am right in saying that any capital gains, less capital losses, in excess of your annual allowance would then be added to your other income which may put you in to a higher tax bracket if you are not there already.
Not exactly; CGT and PAYE (income tax) are separate and they are not added together. However CGT is payable at two different rates, depending on your highest PAYE rate.
If you pay PAYE at 20% (i.e. earn less than £46350 this year) then you would pay CGT at 10%. If you earn over £46350 and are in the PAYE 40% band then any CGT will be payable at 20%.
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