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CGT on disposal of second property
Comments
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No - that is not correct. The personal allowance for income (12500) cannot be utilised against your capital gain. You will pay Capital gains on £6000 at 18% rate.PaulCooper said:Question, I think I know the answer to, but for clarification. Above has now become a reality and I realise I have to report & pay it within 30 days. Both myself & wife will earn less than the £12500 income tax allowance this year. Assume I earn £10k this year, does this mean a negative figure of £2.5k (10 - 12.5) is taken off my CGT liability? e.g. if after CGT allowance I'm due to pay CGT on £6k, does the negative figure of £2.5k mean I pay 18% on £3.5k (6 - 2.5) or 18% on the £6k?
Thanks--- looked on all the HMRC stuff & couldn't explicitly find the answer
Paul0 -
Great, thank you, that was what I suspected----------- ever hopeful!
Paul0 -
Unused personal allowance has no impact on capital gains tax liability, so you pay it on the £6,000 in your example.0
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Thanks Jeremy
Paul1
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