Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

CGT Allowance

Practical Issues
melonfool
Lemon Quarter
Posts: 2939
Joined: November 4th, 2016, 11:18 am
Has thanked: 1365 times
Been thanked: 793 times

CGT Allowance

#286605

Postby melonfool » February 25th, 2020, 12:57 pm

Hi,
MelonFool allowed me to use her Lemonfool account for this and I hope you can help.

I wish to make a pension contribution to extend the 20% tax band so high rate CGT is not payable on a property sale but also have a gain on a share sale which should qualify for Entrepreneurs relief. The gains therefore have different tax rates applying to them.

The gain on the property sale is circa £20,000
The gain on the Share sale is £9,250

Th question is: Will the Share sale use up £9,250 of the £12,000 CGT allowance leaving the bulk of the property sale taxable at a higher CGT rate or is it allocated in some other way?

I hope I explained the question correctly.

Thank you

MelonFool's Friend

Urbandreamer
Lemon Quarter
Posts: 3121
Joined: December 7th, 2016, 9:09 pm
Has thanked: 347 times
Been thanked: 1025 times

Re: CGT Allowance

#286619

Postby Urbandreamer » February 25th, 2020, 1:53 pm

I can't comment upon the bulk of the question.

However from the 6th of April you will only have 30 days to report the sale and pay the GCT on the property. Penalties and interest will be due after that!

I googled this, hope it helps.
https://www.churchill-knight.co.uk/blog ... -property/

scrumpyjack
Lemon Quarter
Posts: 4812
Joined: November 4th, 2016, 10:15 am
Has thanked: 605 times
Been thanked: 2675 times

Re: CGT Allowance

#286627

Postby scrumpyjack » February 25th, 2020, 2:19 pm

Where a person has both residential property gains and other gains, then the annual exempt amount and any capital losses should initially be deducted from the residential property gains.

ie you can allocate the gains in the way most advantageous to you.

melonfool
Lemon Quarter
Posts: 2939
Joined: November 4th, 2016, 11:18 am
Has thanked: 1365 times
Been thanked: 793 times

Re: CGT Allowance

#287251

Postby melonfool » February 27th, 2020, 9:03 pm

Thank you all for your help - both posts very useful!

Mel


Return to “Taxes (Practical)”

Who is online

Users browsing this forum: No registered users and 8 guests