keith7819

Perfect. Thanks. The disposals proceeds will be under £50000 and the gains will also be under £6000 for this tax year so we will have nothing to report

Sorry I was getting confused about capital gains and personal allowance which I now understand are taxed differently The gain is only 500 pounds (not 25k) and as I now understood it, you are only taxed on your gains above the annual allowance (not the whole amount that you receive. If I bought shares for £24.5k and then sold them for £25k making only a £500 profit. That £500 gain would be within the annual exempt amount of £6000 so no cgt tax is required. The original amount you invested is not taxable when you get it back, only the profit is. So If I bought shares for £1 million and then later sold them for £1,000,500. Then it is the same scenario as above If my salary was 12k then I would be in the 0% tax band. If I sold any amount of shares then they would be subject to cgt not income tax so the tax band would remain unaffected. That is how i understand it. Please let me know if you think otherwise

I just want to know if this would take me out of the 0% tax band with the following example Salary £12k Disposals of shares = £25k Capital Gains = £500 Thanks

Or is it just the gain that counts towards the personal tax allowance of £12,570?

If disposals of shares was £13k (and under 6k gain so no cgt payable) and assuming that there was no other income, does the £13k disposal count towards to personal tax allowance of £12,570?

If they disposed of £99999 and made gains of £11999 then separately their disposal would be calculated at under £50k and under the £6k gain allowance so that would mean that they would not need to report anything. Is that correct?