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Hi,
Regarding entrepreneurs relief when calculating chargeable gains; when it is claimed does it automatically use up all of the basic rate band of 18% meaning that anything not qualifying for this relief is automatically charged at 28%? Or would it still depend on the taxable income of the individual?
For example:
– Taxable income = 10,000
– Gains qualifying for entrepreneurs relief = 10,000
Would the remained basic rate band of 14,370 (34,370 – 10,000 – 10,000) still be able to be utilised on the remaining gains or would they automatically be taxed at 28% because the relief was claimed?Thanks!
As after firstly taxing the gains eligible for entrepreneurs relief there still remains some basic rate band your calculation that the first 14,370 of any non ER gains will indeed be taxed at 18% before any further such gains will be taxed at 28% is correct!
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