CGT and Charity Donations

If a large personal donation to charity is made in the same year as CGT is due from sale of a second home, does this affect CGT liability and in what way please?

Hi Graham,
Please refer to guidance here:
Tax on foreign income
Thank you. 

Hi HMRC and Graham, I have the same question but this is nothing to do with foreign income. I'm a UK resident and about to sell a UK second home. I would like to donate all the profit after expenses and purchase cost to charity. Do I have to pay CGT?

Hi,
No you do not.  
Please have a look at guidance on this topic at:
Capital Gains Tax: what you pay it on, rates and allowances
Thank you.

Not HMRC...think HMRC has misunderstood the question. If you sell in your own name then CGT is due as normal, the net after paying the CGT would be available to gift (but CGT doesnt count to offset for relief for income tax). If you were to gift the property (which is not what you were asking) then the situation is different.

Hello Clive and HMRC Admin 32, I have read the guidance note. It seems to imply that I have to donate the asset (the house) to charity not the proceeds or profit. I was hoping to sell my second home then donate all of the profit (capital gain) to one or more charities before the 60 day period had expired. Am I right in understanding that I would still have to pay CGT on the capital gain? Thanks.

'fraid so...its liable to CGT if you sell it in your name as the owner, regardless of what you then do with the proceeds (after CGT paid), the timeline is sell property, account to HMRC for tax on gain, give donation to charity (on which gift aid is claimable if charity registered) and claim tax relief personally on the gift (if sufficient income to cover the gift, if you dont have sufficient income in the year (NOT the CGT payable, but sources liable to INCOME tax) to cover the giftaid claimed you will also end up peronally with an income tax charge of the difference!!...you need to work the situation out carefully.

Could HMRC please clarify their answer to the original question which I have reframed? 1. I sell a property for £500k. 2. Capital gain is £75k. 3. I make a charitable donation (gross) of £75k, £60k net. 4. For the purposes of this example I have no other income. 5. Is my donation allowable against CGT.

Hi ,
 

No.  The charitable donation can be claimed aginst income tax, but not capital gains tax.

Thank you .