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Posh and Becks have spiced things up by starring in Netflix’s latest docu-series Beckham.
It’s the talk of the town – you either love them or hate them, want to be them or nothing like them. And buzz cuts might even make a comeback. 🪒
Tapping into Man’ United fans and haters, Spice Girls stans and beraters, the Beckhams have made their way back onto our radars, for better or worse. And with so much hype surrounding them, we couldn’t resist giving our two cents. Tax-related, of course. 💁♀️
With a nickname like ‘Posh Spice’, Victoria likes the finer things in life. And, with over 15 engagement rings worth over £30 million, it makes sense. 💍
But, what if Victoria sells one or two?
Well, let us introduce you to Capital Gains Tax.
David, on the other hand, on top of his staggeringly high football salary, is known for securing lucrative deals with brands like Armani, Gilette and Addidas. ⚽
With that in mind, he’s probably spent a fair bit of money on his wife’s countless engagement rings over the years, meaning their sale would earn a profit well over £6,000.
And considering her net worth (around ten times that of the other Spice Girls) Victoria would have to pay CGT at a higher rate, 20%. 🤯
Curious to know exactly how much CGT Posh would pay? Check out our Capital Gains Tax calculator below.
Your total capital gains tax (CGT) owed depends on two main components:
Your overall earnings determine how much of your capital gains are taxed at 10% or 20%.
Our capital gains tax rates guide explains this in more detail.
In your case where capital gains from shares were £20,000 and your total annual earnings were £69,000:
You pay no CGT on the first £12,300 that you make
You pay £127 at 10% tax rate for the next £1,270 of your capital gains
You pay £1,286 at 20% tax rate on the remaining £6,430 of your capital gains
As we’ve learnt, Becks was one of the first sports professionals to capitalise on their fame off the pitch.
From footballer to fashionista and then turned businessman, David’s not missed a hat trick in the book.
Which brings us to the noughties and the release of the well-loved Bend It Like Beckham. But, we’re not as interested in sports comedies as we are tax.
Bending the rules for Becks
It seems like Real Madrid really wanted Becks. Adiós Fergie! 👋
In 2013, the celebrity power couple splashed millions on a mansion appropriate for British royalty in Holland Park.
But, when celebrities are involved, a house can’t become a home without a few renovations. And we’re not talking about giving the house a lick of paint. No, the couple spent a whopping £8 million in 2016 spicing up their mansion. 👷
With an accountant likely on speed dial, the Beckhams must know that if they ever sell their primary residence, after increasing its value with renovations, they’ll have to pay CGT.
But, what if they never sell it?
Eventually, the property would be inherited by the couple’s children who would most likely sell it. But, first, they’d need to pay Inheritance Tax. 🏡
With a million-pound mansion, the Beckhams would certainly be over the threshold, £325,000.
But, they won’t have to worry about Inheritance Tax anytime soon.
If you Wannabe rich, not paying income tax for one year could work, right?
Allegedly, Posh, Baby, Ginger, Scary and Sporty, tried just that and didn’t pay their income tax for one year 😮
It was reported that this was as a result of their non-resident status during their world tour. ✈️
In 1999, Posh and Becks tied the knot with each other and OK! Magazine. 💒
Their Robin Hood-themed wedding grabbed worldwide attention, but not for stealing from the rich and giving to the poor. 🏹
The only thing that was stolen was our hearts when OK! gave us an exclusive peek into their special day, costing the magazine $1.2 million!
1999 must have been a good time to be Posh and Becks. But, you wouldn’t have been envious of their income tax bill. 💸
After receiving millions from OK!, the newlyweds would’ve been taxed at the highest rate that year. 👰
Since the release of Beckham, there’s been lots of speculation as to why Posh and Becks are giving us the inside scoop.🍦
Nostalgia, PR stunt, or cash flow issues? We guess that’s something only HMRC know. 🤫 But, who cares? Posh and Becks are the ultimate pop icons and that’s what we’re here for!
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