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Yet another CGT question
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ouraggie
Posts: 328 Forumite



in Cutting tax
Hi. I am about to sell a second home. Bought for £120k in 2008, should fetch about £180k now. My question is, if i sell it in ,say, August 2022 i have almost no other income so far in this tax year. However, if i earn anything AFTER I have sold the cottage and paid my CGT bill, will i need to pay further CGT at some point because of that?
I hope my question makes sense. I have searched but not found the answer anywhere.
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You have a Capital Gains allowance of 12300 AND a personal income tax allowance of 12570. If you were to earn more than 12570 after you have submitted your capital gains computation (on the basis that you have no other taxable income) you will pay additional capital gains tax. For example, if you earned 13570, 1000 over the personal allowance, that would mean that 1000 more of the gain should have been taxed at 28% as opposed to 18%, an extra £100 of tax.1
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I wouldn't deliberately avoid generating income this year, you will still be better off!. Sometimes it's better to pay the tax.0
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Slightly OT but if anyone is gifting NorthYorkie said:I wouldn't deliberately avoid generating income this year, you will still be better off!. Sometimes it's better to pay the tax.
property to a member of the family etc, do it over two tax years so you get two allowances IMO but check first as i was advised of this by someone I know.
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[Deleted User] said:You have a Capital Gains allowance of 12300 AND a personal income tax allowance of 12570. If you were to earn more than 12570 after you have submitted your capital gains computation (on the basis that you have no other taxable income) you will pay additional capital gains tax. For example, if you earned 13570, 1000 over the personal allowance, that would mean that 1000 more of the gain should have been taxed at 28% as opposed to 18%, an extra £100 of tax.0
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The gain is sufficiently large to use the basic rate band, so if there is any taxable income, that will increase the amount of the capital gain taxable at 28%.0
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Keep_pedalling said:[Deleted User] said:You have a Capital Gains allowance of 12300 AND a personal income tax allowance of 12570. If you were to earn more than 12570 after you have submitted your capital gains computation (on the basis that you have no other taxable income) you will pay additional capital gains tax. For example, if you earned 13570, 1000 over the personal allowance, that would mean that 1000 more of the gain should have been taxed at 28% as opposed to 18%, an extra £100 of tax.1
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[Deleted User] said:Keep_pedalling said:[Deleted User] said:You have a Capital Gains allowance of 12300 AND a personal income tax allowance of 12570. If you were to earn more than 12570 after you have submitted your capital gains computation (on the basis that you have no other taxable income) you will pay additional capital gains tax. For example, if you earned 13570, 1000 over the personal allowance, that would mean that 1000 more of the gain should have been taxed at 28% as opposed to 18%, an extra £100 of tax.0
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[Deleted User] said:Keep_pedalling said:[Deleted User] said:You have a Capital Gains allowance of 12300 AND a personal income tax allowance of 12570. If you were to earn more than 12570 after you have submitted your capital gains computation (on the basis that you have no other taxable income) you will pay additional capital gains tax. For example, if you earned 13570, 1000 over the personal allowance, that would mean that 1000 more of the gain should have been taxed at 28% as opposed to 18%, an extra £100 of tax.0
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Keep_pedalling said:[Deleted User] said:Keep_pedalling said:[Deleted User] said:You have a Capital Gains allowance of 12300 AND a personal income tax allowance of 12570. If you were to earn more than 12570 after you have submitted your capital gains computation (on the basis that you have no other taxable income) you will pay additional capital gains tax. For example, if you earned 13570, 1000 over the personal allowance, that would mean that 1000 more of the gain should have been taxed at 28% as opposed to 18%, an extra £100 of tax.0
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