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Use personal allowance against capital gains tax
panam
Posts: 29 Forumite
If a minor has zero income, but a large capital gain on investments (say £7000).
Do they use the £6000 CGT exemption to reduce the gain to £1000 and pay 18% on this?
Or can they use the personal allowance to cancel out any tax liability?
If the latter, would they need to report the gain?
Do they use the £6000 CGT exemption to reduce the gain to £1000 and pay 18% on this?
Or can they use the personal allowance to cancel out any tax liability?
If the latter, would they need to report the gain?
0
Comments
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No, personal allowance is purely for Income Tax. Note also that CGT exemption reduces to £3000 on 6th April.1
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