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Posted Tue, 12 Apr 2022 11:54:18 GMT by Whittle
For legal reasons part of the money from the sale of company shares in 2021/22 is being held back by the purchaser with the final figure to be confirmed and paid in 2022/23. When the holdback amount is paid can the CGT tax free allowance from 2022/23 be used against this amount as I will have received it in 2022/23 even though the bulk if the sale was paid in 2021/22?
Posted Wed, 13 Apr 2022 10:37:18 GMT by HMRC Admin 26

Capital Gains Tax is a tax on the profit arising when you sell (or ‘dispose of’) an asset that has increased in value.

It is the gain you make that is taxed, not the amount of money you receive, therefore, the whole of the gain arising from the sale of your company shares would be taxable in 2021/22.       

Capital Gains Tax: what you pay it on, rates and allowances

Thank you           

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