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Posted Fri, 29 Sep 2023 04:19:32 GMT by
We are disposing of two properties One is a furnished holiday let subject to business asset disposal relief taxable at 10% The other is a buy to let I know I can only use the £6000 relied once but if I dispose of both assets in the same year can I use my basic rate tax allowance on both ie are they treated separately or would it be the case that the second gain is added to the first pushing all of the gain into the 28% bracket
Posted Thu, 05 Oct 2023 06:37:00 GMT by HMRC Admin 25 Response
Hi Sarah74 Jobson,
To establish what CGT rate you will pay in a given tax year, you first have to work out how much taxable income you have.
You arrive at this figure by calculating your total income less your Personal Allowance and any other Income Tax reliefs you’re entitled to.
You then work out your total taxable gains by deducting your tax-free allowance from your total taxable gains, and add this amount to your taxable income.
If this amount is within the basic Income Tax band you’ll pay 10% on your gains (or 18% on residential property).
You’ll pay 20% (or 28% on residential property) on any amount above the basic tax rate.  
Capital Gains Tax: what you pay it on, rates and allowances
Thank you.  

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