Capital Gains question - applying personal allowance

bring_back_threepenny_bit

Reasonable questions - I think I have sussed it now. Not very clear on the form. 

The previous question asks about other gross income. The question to which  you refer concerns the amount of personal allowance which you wish to apply to this other gross income in order to calculate the amount of basic rate band already utilised and, thus, remaining to determine the rate of capital gains tax payable. 

This is clear in the ‘Notes to help you report Capitsl Gains tax on UK property. 

Thanks, this is incredibly helpful. I can now see light at the end of the tunnel.
In this instance, would it be sensible to apply the whole of the Personal Allowance (12570) to the CGT bill and thus have it taxed at 18% instead of 20%? Or would that lose the 12570 that you get Tax free?
Or, as income is 30500 (not 35000!)  then 30500+12570 = 43070, this is 7200 less than the Basic rate threshold of 50270 - so I should just apply the 7200?

[Deleted User]

Sort of. In the box to which you refer you would enter 12570 - you have to as it has been used against other income. 

The calculation is as follows. You don’t add 12570 to your income. The basic rate band is 37700. You pay higher rate tax on income over 50270 (37700 plus 12570)

Income 30500
Personal allowance 12570
Basic rate band used 17970
Basic rate band remaining 19730

If the gain, after deducting the 6000 exemption, is less than 19730 it is all chargeable at 18%. 

You don’t lose the 12570. Also you cannot apply it to the capital gain. It remains set against your other income. Remember you have both a personal allowance against earned income of 12570 and a capital gains exemption of 6000. 

So, in the two boxes: 

Other income 30500
Personal allowance that you wish to use (against this income and only this income) 12570.

bring_back_threepenny_bit

You don’t lose the 12570. Also you cannot apply it to the capital gain. It remains set against your other income. Remember you have both a personal allowance against earned income of 12570 and a capital gains exemption of 6000. 

So, in the two boxes: 

Other income 30500
Personal allowance that you wish to use (against this income and only this income) 12570.

Right, I think I was led astray by thinking the whole thing was about CGT when those two questions are about regular income. It would be clearer if it said 'How much of your Personal Allowance do you want to apply to your gross income in the box above?' But I wonder why anyone would apply less than their full 12570 allowance, to their income anyway?