Please help re CGT allowance

thenap80

I would be so grateful for someones help and knowledge on this - a bit of easy maths hopefully and knowledge of income max and CGT!
(Please I'm not after "get an accountant" replies!)

I am about to complete a house sale. Let's say I have to pay CGT on £80,000 profit. I currently let the property out and the rent has been my only income for past years (about 15k/year income). 

With the CGT allowance about to decrease to £6k from £12300, would I be better off waiting until April 6th, so the new tax year to complete. So in 23/24 my income tax woud be zero and hence a full income tax allowance, albeit 6k less on the CGT allowance. Or would I profit more by completing in this tax year, 22/23, even though my income tax personal allowance has been used up, but CGT is £12300. 

I tried calcs on .gov.uk but will only allow calculations for current tax year and not able to take into account the CGT allowance forthcoming change. 

If anyone can answer, I will be indebted to you! Thank you. 

Keep_pedalling

Your IT and CGT allowances are separate so you would pay twice as much CGT delaying completion until the next tax year.

propertyrental

If you wait till April (23-24), you'll
* you'll pay income tax for this year (22-23) on your rent received this year, against which you'll set your IT allowance for this year ,and
* have your full Income Tax allowance for next year to set against the rental income you receive in the 23-24 tax year, and
* have only the new reduced CGT allowance (£6K you say?) to set against your capital gain of (say) £80K (assuming you sell at the price you've based that gain on).

In contrast if you sell this year you'll pay
* your income tax on this year's rental income(as above, and
* have the curtent CGT allowance (£12K odd)  to set against your capital gain of £80K

thenap80

I still cant think if I am bettter off waiting to complete in 23/24 or not. 

2poor4this

thenap80 said:

I still cant think if I am bettter off waiting to complete in 23/24 or not. 

I'm no expert on this so please don't take any of this as fact. Waiting till the next tax year you'll only get £6000 capital gains tax relief instead of £12300, I also believe you'll be paying 18% CGT on the first £50k (minus your CGT free allowance) and then 28% CGT on the rest, I think you pay 18% CGT even without an income (which means you wont gain much by waiting for next year) but that is something I'm sure can be answered properly by others.