CGT and the lower/higher rates

Can we choose to have the Property gain taxed at the lower 18% when there is a gain eligible for ER?

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Our client has about £27,000 income and 2 Capital gains in 2016/17.

One gain of circa £60,000 is eligible for ER, the other on Residential property (no PPR available) is around £50,000

There is scope for some of the gain to be taxed at the lower rate, so can we have part of the property gain taxed at the lower 18% or does the ER gain use up all of the available lower rate band?

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By grahambonds
23rd Jun 2017 10:40

The ER gain uses up the unused basic rate band. You can choose which gain gets the annual exemption.

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Replying to grahambonds:
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By happytony42
23rd Jun 2017 16:03

Thanks. Do you have a reference at all that I can quote to my client?

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By CTA
23rd Jun 2017 16:52

s.4(6)

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