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Posted Fri, 06 May 2022 22:00:27 GMT by tigerspill
Hi, I know that everyone has an allowance of £12,300 before CGT is payable. However, is there additional allowance if income is below the £12,570 where income tax becomes payable? For example, if income is £10,000, do you get a further allowance against CGT of £1,270 (the amount of income still available at 0%)? Thanks
Posted Thu, 12 May 2022 12:32:21 GMT by HMRC Admin 19

Yes, if you have unused personal allowances these will be offset against any capital gain.  

You can check the calculator online, this shows the calculation and allowances given when working out your tax liability:

Tax when you sell property

Thank you.
Posted Sat, 28 May 2022 14:45:45 GMT by David Massey
Are you sure? As I understand it the income tax Personal Allowance cannot be set against a capital gain. If the rules have changed, please can you provide details of the legislation that now allows this?
Posted Mon, 30 May 2022 19:47:20 GMT by Gary Coombs
I am with David Massey on this. Indeed, running though the calculator link above, and showing zero income on £12,570 personal allowance, the only amount set against the gain is the AEA.
Posted Tue, 31 May 2022 10:21:26 GMT by HMRC Admin 17

David Massey,
If your Capital Gain is below the annual exempt amount, there is no rate applied as the gain is not taxable .

Thank you.

Posted Tue, 31 May 2022 10:29:34 GMT by Bella Boo
Admin I think you've misunderstood the question. The original question is whether they can use unused income tax personal allowance against capital gains. Not whether they can use the personal allowance for capital gains.
Posted Tue, 31 May 2022 10:33:06 GMT by tigerspill
But this wasn't my question. My question was specifically whether I can use any remaining Income Tax allowance against Capital Gain. The response from HMRC Admin 19 seems incorrect as when I now enter these in this year's SA, it does NOT take unused income tax allowances against CGT. They seem to be totally separate.
Posted Tue, 31 May 2022 11:45:47 GMT by HMRC Admin 30

You cannot use any unused personal allowances gainst Capital Gains.

Thank you.

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