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    • rob_hants
    • By rob_hants 15th Mar 17, 1:22 PM
    • 3Posts
    • 0Thanks
    rob_hants
    CGT when disposing of both property and shares in 2016/2017 tax year
    • #1
    • 15th Mar 17, 1:22 PM
    CGT when disposing of both property and shares in 2016/2017 tax year 15th Mar 17 at 1:22 PM
    Hi,

    Can anybody explain how the different rates will now be applied if you dispose of both property and shares as the rates are now different for each (8% higher for property gains). Specifically can you still offset a loss from shares against a gain from property?

    For example if I made £50,000 from selling a house, but lost £20,000 after selling some shares would I then be taxed as if the property gain was only £30,000?

    What about more complicated cases where some shares were sold for a profit and some for a loss together with property gain? Would the loss be offset against the property gain or the shares gain? It would obviously be more tax efficient to offset any loss against a property gain.

    I'm trying to decide if selling some under performing shares could reduce my CGT liability from selling a second inherited property (which was sold above the probate valuation).

    HMRC web chat told me that the new rules do not effect loss calculation, but I was not entirely convinced as the example they directed me towards was for the 2015/2016 tax year (before the changes).

    I wish HMRC would provide clear examples to cover edge cases when the tax rules change, but it just seems to be get more complicated every year. The worked examples they give usually just seem to cover the blindingly obvious!

    Many thanks,

    Robin.
Page 1
    • Keep pedalling
    • By Keep pedalling 15th Mar 17, 3:14 PM
    • 2,904 Posts
    • 3,079 Thanks
    Keep pedalling
    • #2
    • 15th Mar 17, 3:14 PM
    • #2
    • 15th Mar 17, 3:14 PM
    Your losses in shares can be simply offset against your property gain. If you had gains in both property and shares, you can offset all losses in other shares against your property gains.

    In other words your losses can be used to offset the gains incurring the highest tax rate.

    https://www.gov.uk/capital-gains-tax/rates-6-april-2016
    • rob_hants
    • By rob_hants 17th Mar 17, 1:56 PM
    • 3 Posts
    • 0 Thanks
    rob_hants
    • #3
    • 17th Mar 17, 1:56 PM
    • #3
    • 17th Mar 17, 1:56 PM
    Your losses in shares can be simply offset against your property gain. If you had gains in both property and shares, you can offset all losses in other shares against your property gains.

    In other words your losses can be used to offset the gains incurring the highest tax rate.
    Originally posted by Keep pedalling
    Thanks, that is how I hoped it worked.
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