CGT and subsequent years

Cobbler_tone

Asking for a friend....I am quite confident in the answer but looking for confirmation.

They have a private pension of c£30k a year and £800k saved. They have just sold a (second) property and paid the appropriate CGT bill.
Am I right in thinking this is now dealt with in terms of any future treatment for tax? i.e the gain isn't looked at again in any context in terms of additional taxation during self assessment.

El_Torro

Assuming the second property was sold this tax year this only affects their tax bill this tax year. I believe the tax they have paid is just an estimate for now, the final number won't be known until this tax year ends. 

Depending on what they do with the proceeds there might be future taxes to pay on interest or capital gains. 

Cobbler_tone

Thanks makes perfect sense.

Dazed_and_C0nfused

The CGT could well be more than they have provisionally paid.

Having cash in a bank account will likely increase their taxable income which in turn uses some of the basic rate band (this includes interest taxed at 0%).  Which in turn leaves less basic rate band available for the Capital Gains.

So a lot depends on how accurate their in year CGT calculation was.

Cobbler_tone

Dazed_and_C0nfused said:

The CGT could well be more than they have provisionally paid.

Having cash in a bank account will likely increase their taxable income which in turn uses some of the basic rate band (this includes interest taxed at 0%).  Which in turn leaves less basic rate band available for the Capital Gains.

So a lot depends on how accurate their in year CGT calculation was.

I believe he factored this in. I know they have that private pension and input a heavily inflated taxable income to allow for projected interest. 
My partners was more straight forward as she is employed and we input her projected working taxable income for the year. 
 

Bookworm105

- you paid CGT when your reported the sale
- your annual self assessment repeats the details of that transaction as until your total income for that tax year is declared on SA there is a possibility that the CGT will be affected by your actual marginal tax rate leading to an underpayment of CGT at its higher rate

once you have closed out the SA then yes, that is that for the future.