State Pension and self assessment for capital gains tax.

Thursday123

Hello. Could you help me. My sister who is currently a landlord is transferring her rented property to my niece in the new year. According to HMRC rules calculating capital gains tax in a self assessment computation involves total income which includes gross salary+ rental income less allowances + capital gain. That's ok. However, my sister also receives state pension. Am I correct in saying that state pension received gross will also have to be added into the total income amount on the self assessment to determine the final capital gains tax figure.

Also, is a workplace pension taxable on a self assessment computation for CGT purposes.

 

Dazed_and_C0nfused

Thursday123 said:

Hello. Could you help me. My sister who is currently a landlord is transferring her rented property to my niece in the new year. According to HMRC rules calculating capital gains tax in a self assessment computation involves total income which includes gross salary+ rental income less allowances + capital gain. That's ok. However, my sister also receives state pension. Am I correct in saying that state pension received gross will also have to be added into the total income amount on the self assessment to determine the final capital gains tax figure.

Also, is a workplace pension taxable on a self assessment computation for CGT purposes.

 

You have to include all taxable income on a Self Assessment return, you don't pick and choose.

State Pension is a bit different as you should show the amount you were entitled to, which can be slightly different to the amount DWP paid.

The income tax element will determine how much basic rate band is left available to be used in the CGT part of the calculation.

Farway

You may be better asking over on the Savings & Investments board, very knowledgeable people there

https://forums.moneysavingexpert.com/categories/savings-investments

I have requested the move over

sausage_time

I moved to this board @Thursday123.