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Yet another CGT question

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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.

Comments

  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Eighth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 30 May 2022 at 11:57AM
    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.
  • NorthYorkie
    NorthYorkie Posts: 100 Forumite
    Third Anniversary 10 Posts
    I wouldn't deliberately avoid generating income this year, you will still be better off!. Sometimes it's better to pay the tax.
  • diystarter7
    diystarter7 Posts: 5,202 Forumite
    1,000 Posts First Anniversary Name Dropper
    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. 

  • Keep_pedalling
    Keep_pedalling Posts: 20,611 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    edited 22 January 2024 at 3:51PM
    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.
    Are you sure about that? The 28% rate is for HR tax payers not basic rate payers.
  • Jeremy535897
    Jeremy535897 Posts: 10,732 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    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%.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Eighth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 22 January 2024 at 3:51PM
    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.
    Are you sure about that? The 28% rate is for HR tax payers not basic rate payers.
    Yes as Jeremy says - the gain is £60000!
  • diystarter7
    diystarter7 Posts: 5,202 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 22 January 2024 at 3:51PM
    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.
    Are you sure about that? The 28% rate is for HR tax payers not basic rate payers.
    Yes as Jeremy says - the gain is £60000!
    100% spot on.
  • Keep_pedalling
    Keep_pedalling Posts: 20,611 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    edited 22 January 2024 at 3:51PM
    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.
    Are you sure about that? The 28% rate is for HR tax payers not basic rate payers.
    Yes as Jeremy says - the gain is £60000!
    Sorry, my misunderstanding of the answer.
  • Jeremy535897
    Jeremy535897 Posts: 10,732 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    edited 22 January 2024 at 3:51PM
    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.
    Are you sure about that? The 28% rate is for HR tax payers not basic rate payers.
    Yes as Jeremy says - the gain is £60000!
    Sorry, my misunderstanding of the answer.
    Understandable. I thought about replying as you did, but then realised why it wasn't necessary to do so.
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