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.
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
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.