Annual exempt amount for 2018/19 CGT

wheelz · 14 October 2018 at 3:14PM

I have calculated my capital gains tax and the conclusion is that I don't have to pay any (I lived in the property for half of the time) and that I have an annual exempt amount for 2018/2019 tax year.

I rang HMRC and as I don't need to fill in a tax return next year (no longer have rental income) they advised that I fill in a real time transaction CGT. I was also happy to pay any CGT as soon as possible to get all the tax business done. I started filling this in on the HMRC website and then, when I had to do some more reading and calculations found the calculator on the HMRC website, until then I didn't know I did not have to pay Capital Gains tax.

How does it work in practice, what do they do with my remaining deductions? I would not fill in a self assessment as I don't have any income. Do I wait for April and fill in my tax return? I will also ring HMRC again. Would you know?

wheelz · 14 October 2018 at 5:16PM

HMRC's words are as follows in on the page where you can calculate whether you need to pay capital gains tax https://www.tax.service.gov.uk/calculate-your-capital-gains/resident/properties/

Your remaining deductions
Annual Exempt Amount left for the 2018 to 2019
tax year "amount" (it's somewhere between 5000 and 10000)

So it sets out total gain, minus reductions, taxable gain (0), tax to pay (0) and then the above. This is based on details you put in such as sale and purchase price, dates, private residence relief, letting relief. When you fill all that in they tell you if you have to pay CGT and then state the above.

jimmo · 14 October 2018 at 10:19PM

I have not seen that calculator before but what they describe as "Remaining Deductions" I would describe as unused AEA ( Annual Exempt Amount). HMRC will not do anything with that. It is, in effect, simply an indication to you of how much more you could realise in Capital Gains before needing to pay any CGT.
Like the Income Tax Personal Allowance it is "Use it or lose it." There is nothing to carry forward so no need for anyone to do anything unless you happen to make further Capital Gains in the current tax year.

wheelz · 19 October 2018 at 2:35PM

Cool, yes that was my conclusion from following all the steps. It asks you whether you will have some more capital gains tax that is expected, if not then that's it.

Annual exempt amount for 2018/19 CGT

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