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Use personal allowance against capital gains tax

panam
panam Posts: 29 Forumite
Ninth Anniversary 10 Posts Combo Breaker
edited 2 April 2024 at 4:52PM in Cutting tax
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?

Comments

  • BoGoF
    BoGoF Posts: 7,098 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    No, personal allowance is purely for Income Tax. Note also that CGT exemption reduces to £3000 on 6th April.
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