HMRC Admin 32
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RE: Capital Gains and Income tax personal allowance
Hi,
Income Tax and Capital Gains Tax are two entirely separate taxes, with each having is own tax free element. In 2023 to 2024, Income Tax has a personal allowance of £12570 and Capital Gains Tax has an annual exempt allowance of £6000. The two taxes are always, without exception, calculated separately.
Income Tax is always, without exception, calculated first. Where there is an element of the basic rate band (20%) not utilised against income, this unused element can then be utilised as the lower rate of capital gains tax (either 10% or 18% depending on the type of gain) with any remaining gain taxed at 20% or 28%.
Capital Gains Tax for residential property is taxed at the lower rate of 18% and the higher rate of 28%, whereas, personal possessions such as stocks and shares or jewellery, paintings, antiques, coins and stamps and sets of things, eg matching vases or chessmen; are all taxed at the rates of 10% and 20%.
Tax when you sell property
Capital Gains Tax on personal possessions
Thank you. -
RE: Calculating adjusted net income for Tax-free Childcare
Hi,
Yes, it would be the grossed up figure that you deduct.
Thank you. -
RE: Relocation expenses timing
Hi,
They will be paid or reimbursed by the employer.
Thank you. -
RE: Fx income
Hi,
Currency other than sterling is a chargeable asset and its disposal can give rise to a chargeable gain or an allowable loss.
If you are resident in the UK, then you may have Capital Gains Tax to pay on the conversion to pounds sterling.
Have a look at CG78300 onwards for more information.
CG78300 - Foreign currency
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RE: Bonus from a former employer
Hi,
If you receive your bonus through PAYE, then this will be taxed after a month's worth of allowances have been applied. When you begin working again, any tax overpaid as a result of unused allowances and rate bands will be refunded through your wages.
Alternatively, you can claim a tax refund while unemployed by completing a P50, though some conditions may apply.
You can find more advice here:
Claim back Income Tax when you've stopped working (P50)
Thank you. -
RE: Trust Income
Hi,
The trust is required to provide you with form R185 to show the income received. Without this HMRC cannot advise you if any tax is owed.
Trusts and taxes
Thank you. -
RE: VAT
Hi,
The only exceptions where VAT would not be charged is if there were internal charges within the same legal entity or if there was was charges between companies within the same VAT group.
Please see below:
VATSC02140 - Basic principles and underlying law: Transactions which fail to be supplies and supplies disregarded for VAT purposes
Group and divisional registration (VAT Notice 700/2): 5. Group registration — accounting for VAT
Thank you. -
RE: VAT
Hi,
The only exceptions where VAT would not be charged is if there were internal charges within the same legal entity or if there was was charges between companies within the same VAT group.
Please see below:
VATSC02140 - Basic principles and underlying law: Transactions which fail to be supplies and supplies disregarded for VAT purposes
Group and divisional registration (VAT Notice 700/2): 5. Group registration — accounting for VAT
Thank you. -
RE: UK-based Freelance B2B services outside UK: outside UK VAT scope or zero rate?
Hi,
Based on the Place of Supply Rules your supplies will be Outside The Scope of VAT amd hence there will be no requirement to register for VAT.
Please see below:
Place of supply of services (VAT Notice 741A): 6. The place of supply rules for services
You can register for VAT voluntarily if you wish.
Please see section 2.9 below:
Who should register for VAT (VAT Notice 700/1): 2. Basic principles
Thank you.