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  • RE: Capital Gains and Income tax personal allowance

    Hi, I am trying to find out which type of Capital Gain (property vs non-property) comes first in the calculation hierarchy. So, for example, if my normal income puts me at £33,000 that means I have £4700 unused Basic rate band. Then, say, I have a property capital gain of £4000 and a non-property CG of £4000 in the same year. Should I put the property CG first so it will be taxed at 18% and then the non-property gain second so it will have £700 taxed at 10% and £3300 at 20%. Or, should the non-property CG be addressed before the property CG. With the rate differential now different for the Basic vs Higher brackets (Basic property is 8% higher whereas Higher Property is only 6% higher) this makes a difference. It is cheaper to put non-property first.