CGT and Payments on account

CGT and Payments on account

Didn't find your answer?

I have a client whose income is significantly reduced in 2015/16, and in preparing his 2015 tax return I am therefore intending to reduce his payments on account for 2015/16.

However he may sell a property and make quite a large gain before 6th April 2016.  If it needs to be covered by the payments on account, the CGT would cancel out the reduction which is based on income only.

But do I need to take CGT into account at all in this?  Can I simply reduce the payments on account based on the lower income and ignore the CGT?

Many thanks for any comments.

Replies (3)

Please login or register to join the discussion.

By Paul D Utherone
19th Jan 2016 17:38

CGT does not come into the POA

It is always paid as the balancing amount due on 31 Jan following the tax year... so to your last - Yes

Thanks (0)
avatar
By CrowtherP
20th Jan 2016 13:47

Non-resident CGT payable

Yes; but do not forget some non-Residents now have to pay CGT immediately following disposal of residential property in 2015-2016.   Generally all CGT is paid 10 months after end of tax year.

Thanks (0)
avatar
By 0705736
20th Jan 2016 21:17

Thanks for your help.

Thanks (0)