Capital Gains Tax - offset with income tax?

[Deleted User]

Sorry to ask - can't find the answer to this anywhere ...



I have sold a rental property and have some CGT to pay, but also a very small income, so that I am not even a basic rate tax payer.



Can the amount of CGT I need to pay be offset against a low income, or are they treated totally separately?



Thanks

p00hsticks

they're separate.

BoGoF

I think the question is can unused personal allowance be set against cgt?

If so, no.

[Deleted User]

Thank you for your speedy replies.


I had feared that this was the case.


Better get on with it ...

Pennywise

Have you spent anything on renovations/improvements in the last year?

If so, rather than claiming them as an expense against rental income (to show a low profit), you may be able to claim them as an enhancement instead to reduce the capital gain.

It's the default position for people to try to argue that all costs are revenue expenses against lettings income, but in cases like this, that could prove to be a lost opportunity where it would have been better not to claim each year and instead to carry forward to increase the "cost" of the property to set against eventual sale proceeds.