Hello all,
My situation:
Last day in this tax year left, trying to optimize before SA is locked down, having some excess over expensive threshold tax band and then only available flexibility to bring it down is to fix loss via shareholding (London Stock Exchange), e.g. sell at loss (markets went down recently) and then buy back (but liquidity on the only loss-making positions is terrible, therefore commission+levy+stamp_duty on fourth and back operation might drain 10-20% off current value, therefore increasing loses)..
So the question:
In what order income tax thresholds are filled for Self Assessment?
e.g. for marginally crossing 50K tax band threshold scenario, (obviously some allowances are toasted)
1) PAYE is taxed first (say 15K, net allowance 12.5K, except if above 100K)
2) Interest (say 2K net 1K allowance)
3) Dividend (say 20K net 2K allowance)
4) Capital Gain (say 20K net 12K allowance)
and for marginally crossing 150K+ threshold scenario
1) PAYE is taxed first (say 15K no allowance)
2) Interest (say 10K net 0.5K allowance)
3) Dividend (say 50K net 2K allowance)
4) Capital Gain (say 80K net 12K allowance)
So in what precedence these elements are ordered? What is taxed first and what last? (what actually falls over into higher band)
What category will fall into expensive band in 50K scenario and 150K income tax band scenario?
Thank you.
My situation:
Last day in this tax year left, trying to optimize before SA is locked down, having some excess over expensive threshold tax band and then only available flexibility to bring it down is to fix loss via shareholding (London Stock Exchange), e.g. sell at loss (markets went down recently) and then buy back (but liquidity on the only loss-making positions is terrible, therefore commission+levy+stamp_duty on fourth and back operation might drain 10-20% off current value, therefore increasing loses)..
So the question:
In what order income tax thresholds are filled for Self Assessment?
e.g. for marginally crossing 50K tax band threshold scenario, (obviously some allowances are toasted)
1) PAYE is taxed first (say 15K, net allowance 12.5K, except if above 100K)
2) Interest (say 2K net 1K allowance)
3) Dividend (say 20K net 2K allowance)
4) Capital Gain (say 20K net 12K allowance)
and for marginally crossing 150K+ threshold scenario
1) PAYE is taxed first (say 15K no allowance)
2) Interest (say 10K net 0.5K allowance)
3) Dividend (say 50K net 2K allowance)
4) Capital Gain (say 80K net 12K allowance)
So in what precedence these elements are ordered? What is taxed first and what last? (what actually falls over into higher band)
What category will fall into expensive band in 50K scenario and 150K income tax band scenario?
Thank you.
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