The Lemon Fool

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

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/

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.

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

Mel