Higher rate taxpayer

osho67

Well-known member
407 3
I donot know where to post this so I am trying it here . I will be becoming a high rate taxpayer this year and I would like to minimise my tax payments. I will be paying more tax on interest received and dividends . I am hardly using the CGT allowance. Please help as to what can be done as I still have several months to plan effectively. All help much appreciated. Thanks
 

Trader333

Moderator
8,646 977
This discussion has been had before I think and the general view was rather than try and work it all out yourself you would be as well to use an accountant.


Paul
 

JonnyT

Senior member
2,560 22
It depends if you are self employed or not amongst other things.

To use the CGT allowance you have to make capital gains!!!

Sorry I cannot help more but you need to supply much much more information.

JonnyT
 

bonsai

Veteren member
4,106 11
age old problem
how do I convert my 'risk free' income so it looks like a capital gain and get the inspector to swallow it.

depends how much you need to shift but nearly all the loopholes
have now been closed.

but unless you are talking really big bucks, forget it.
 

Trader333

Moderator
8,646 977
I dont understand why there is a preference to make a profit a capital gain for the following reason:

The capital gain limit is around £8K per year (I cannot remember the exact figure) After this you pay 40% on anything above the £8K limit.

Where as earnings are not taxed at 40% until you are in the mid £30K bracket.

The only real advantage is that you can offset capital losses indefinitely into the future but you would need to declare this to be able to do so.

I may be missing something here as I only got 120 on the IQ test and JonnyT got 143 so maybe he is better placed to advise although there were no questions on bananas or coconuts on my test which I believe prejudiced my result..

Cheers


Paul
 

osho67

Well-known member
407 3
If one is already paying 40% on income and capital gains allowance is unused , it will be good to find ways to make capital gains for tax free income upto £7700.
 

bonsai

Veteren member
4,106 11
suggest you turn the coin over ?

look at it from the point of view of someone who will benefit.?
 
 
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