CGT Increase tax code?

HappyJnP

I have just accepted an offer on my only BTL.
CGT is payable based on this yrs income and my tax code.
1 I have overpaid tax of 1200 from previous year.  Current tax code is 450L.  Should I ask HMRC to increase my tax code and will that reduce my CGT liability?
2 This years expected earnings will depend on when sale goes through and tenants move out. Also I’ve increased my Sal sac pension a few months ago in June.  How does my expected income get calculated?  Is the expected earnings what HMRC state on my account or can I change that?
3 I’ve not yet done my self assessment for last year yet.  If I do soon that may affect tax code so should I do that now as that may increase due to my increased Sal sac?  

4 self assessment give option of adjustment of tax code for this year or lump sum payment.  Would I be better opting for lump sum so that tax code is not reduced?

Many thanks in advance for your thoughts and suggestions 

Dazed_and_C0nfused

HappyJnP said:

I have just accepted an offer on my only BTL.
CGT is payable based on this yrs income and my tax code.
1 I have overpaid tax of 1200 from previous year.  Current tax code is 450L.  Should I ask HMRC to increase my tax code and will that reduce my CGT liability?
2 This years expected earnings will depend on when sale goes through and tenants move out. Also I’ve increased my Sal sac pension a few months ago in June.  How does my expected income get calculated?  Is the expected earnings what HMRC state on my account or can I change that?
3 I’ve not yet done my self assessment for last year yet.  If I do soon that may affect tax code so should I do that now as that may increase due to my increased Sal sac?  

4 self assessment give option of adjustment of tax code for this year or lump sum payment.  Would I be better opting for lump sum so that tax code is not reduced?

Many thanks in advance for your thoughts and suggestions 

1.  That isn't possible.  And even if it was it wouldn't change your CGT liability.

2.  You can change your estimated earnings (expected P60 taxable pay figure) on your Personal Tax Account.  But again that won't change your CGT liability, it's your actual taxable income that will be important.

3.  A tax code is only ever provisional so even if you submit your 2023-24 tax return now and ask HMRC to keep your code upto date (there is a question on the return for this) it is still just a provisional attempt to collect the correct tax on your PAYE income.

4.  You are mixing up two totally different things.  Collection of tax owed from 2023-24 could be via your 2025-26 tax code, not your current (2024-25) tax code.  

sheramber

An overpayment of tax  is not  included in a code number.

You need to request the refund from HMRC.

An underpayment can be included in a code as explained  above

Bookworm105

You are mixing up processes and taxes. CGT is based on your income, not your tax code. Tax code impacts PAYE only. There are 2 steps to CGT

1. you will calculate, declare and pay CGT within 60 days of the completion date of the sale of the property, which obviously will fall somewhere in the 24/25 tax year.

2. you will also need to submit a tax return for the completed 24/25 tax year no earlier than April 2025. You will be required to repeat the CGT calculation and declaration on that tax return. You will then deduct any CGT paid under step 1 which  will result in either no further CGT due or it will result in a net under/overpayment because your tax return covers ALL your income, including PAYE where your history of tax codes may mean you nay have a net under/overpayment carried forward into 24/25 which can then be used against any remaining CGT liability.