ChatterBank0 min ago
capital gains allowance
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For more on marking an answer as the "Best Answer", please visit our FAQ.The total gain is the sale proceeds, less the allowable cost - the allowable cost will depend on who gave you the shares. Costs of sale are also deductable. The gains is then given a taper relief, which increases with the length of ownership - for 7 complete years of ownership, 25% of the gain is exempt, as mentioned above.
Once the gain is calculated this way, it is split between you and your husband, and you both have the �8500 annual exempt amount. Any remaining gain is added to your taxable income for the year, and taxed as if it were the top slice - except that where if falls within the basic rate band, gains are taxed at 20%, rather than 22%.