Can I combine the Personal Income tax free allowance and Capital Gains Tax?

bkpete

Hi,
I have a question, hope someone might be able to help...

I am out of work but not drawing a pension so I have no income (apart from small interest/dividend income from savings/investments). But, I have some shares sitting on a large capital gain. I want to sell these and know I have the CGT tax free allowance of £10,600 to help.

But, my question is: given my income is less than the personal allowance (£8,105) can I combine this personal allowance with the CGT tax free allowance to potentially realise a capital gain on the shares of £18,705 without incurring tax. (I know this assumes I have zero income from other sources - which isn't true for me, but it will help me understand how this works, if I make that assumption!).

I've read lots on the HMRC site, but haven't been able to find an answer to this. Any help, much appreciated!
Pete.

zygurat789

There are several taxes in UK tax law, each with their own copious literature of rules and Allowances.
Among the Income Tax allowances is a personal allowance and in Capital Gains Tax there is an Annual Exempt Amount.
You cannot claim the Capital Gains Tax Annual Exempt Amount against your Income tax nor the Personal Allowance against your Capital Gains Tax

McKneff

I guess that's a 'no' then:D

bkpete

Thanks v much Zygurat - not the answer I hoped for but its great to know!
Pete

getmore4less

Can you split it over 2 tax years, not long till April