Joseph K

This article about the annual trading allowance from the Low Incomes Tax Reform Group may be of help: https://www.litrg.org.uk/working/self-employment/trading-allowance.

Do the employer contributions in the current year cut into the upper bound set by the current year's salary when using up carry-forward allowances? Say, for FY 23-24: - Taxable pay from the employer: £61,000 - Employer contribution to pension: £2,000 - Personal contribution: £58,000 (i.e., the £60,000 limit less employer contribution). Carry-forward allowance from FY 22-23: £3,000. Can the remaining £3,000 of pay in FY 23-24 be used for the carry-forward allowance from FY 22-23? Or is the amount available for the carry-forward limited to £1,000 (i.e. this year's pay of £61,000 less the £60,000 total pension contribution including the employer contribution)? Thanks.

When calculating the threshold income and adjusted income for tapering the pension allowance, should we add capital gains in the tax year to the other forms of taxable income (i.e. salary, savings interest) etc? Thanks.

If we have capital gains in a given tax year from both the sale of property (taxed at 18%/28%) and the sale of shares (taxed at 10%/20%) against which type of capital gain should we apply the tax-free CG allowance for the year? Can we use the tax-free allowance against the CG type that has higher tax? By way of an example: - Total property CG = £10,000. - Total shares CG = £10,000. If the tax-free allowance is used for the gain from property: - Taxable property CG = £10,000 - £6,000 = £4,000. - Tax on property CG (28% of £4000) = £1120. - Tax on shares CG (20% of £10,000) = £2000. - Total CG tax = £1120 + £2000 = £3120. On the other hand, if the tax-free allowance is used for the gain from shares: - Taxable shares CG = £10,000 - £6,000 = £4,000 - Tax on shares CG (20% of £4000) = £800. - Tax on property CG (28% of £10,000) = £2800. - Total CG tax = £2800 + £800 = £3600. There is a £480 difference in the total CG that is due. Thanks.