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Hi.
I am a little confused..Clearly, Gains qualifying for entrepreneurs’ relief will always be taxed at 10%.
what about the Gains not qualifying for entrepreneurs’ relief? I’ve noticed that they are never taxed at 10%. they are directly taxed at 20%, why? I dont get the unused basic rate limit concept used here.
Kindly help me.
ThanksLook at OT course notes p.90, chapter 14, section 1.4 notes and example 2 that follows.
The taxpayer is a basic rate taxpayer but the remaining basic rate band is deemed used firstly by the gains qualifying for ER which therefore pushes the remaining non ER gains out of the 10% band and up into the 20% rate
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