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    • Robokid40
    • By Robokid40 6th Jan 18, 2:32 AM
    • 9Posts
    • 0Thanks
    Do you have seperate allowances for earned income and capital gains tax?
    • #1
    • 6th Jan 18, 2:32 AM
    Do you have seperate allowances for earned income and capital gains tax? 6th Jan 18 at 2:32 AM

    Are there two separate personal allowance for income and capital gains tax or is it a single the personal allowance which accounts for both.

    For example imagine you earn 15k per year and have investments gain of 20k at end of year.

    Does that mean the personal allowance is used up by the 15k and you will have to pay 20% tax on the remaning £3500 aswell as pay 10% capital gains tax on the full 20k of capital gains.

    Or does it mean with earned income you will pay 20% on the remaning £3500 and on capital gains you will pay 10% on the remaning £8500 i.e. there is an allowance for each income?

    ps. I apologies for the distasteful nick I cant even remember when I opened this account or what made me do that, am gonna pm the site now asking them to change it for me. thanks
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    • Tom99
    • By Tom99 6th Jan 18, 4:15 AM
    • 1,550 Posts
    • 1,006 Thanks
    • #2
    • 6th Jan 18, 4:15 AM
    • #2
    • 6th Jan 18, 4:15 AM
    They are seperate, the basic income tax allowance is £11,500 and the CGT allowance £11,300.
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