R Connolly

My income has been well under the personal allowance for many years. In 2021/22 my income was just over the £1000 allowance from Interest/dividends with no income from trading as I made a loss. If the chargeable gain is treated as income, will I have to pay 20% on the amount which exceeds my personal allowance? If so Can I set previous years trading losses against this?

In the past few years I have made a small loss from the trading of my business. On my self assessment return I have opted to transfer part of my personal allowance to my husband (who pays standard rate tax on his income) thereby increasing his personal allowance. This year I have made a partial withdrawal from a UK based Capital Investment Bond. They have issued a chargeable gain certificate - the value is more than the standard personal allowance. If this is treated as my income (although it was not spent, just moved into an investment ISA with a better return) I will have to pay income tax on the value over the personal allowance. Can I set previous years trading losses against this ‘income’? Does the 26 years the CIB has been running have any effect? Thank you to anyone who has experience of this situation.