CGT and unused personal allowance

CGT and unused personal allowance

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Annual Income £6320

After allowable deductions and Capital Gain Tax annual exemption of £10,900, net capital gain is £40,238

Can I add unused personal allowance (£9440-6320=) £3120 to basic rate band £32,010, therefore  

£35,130 of gain is taxed at 18% = £6,323.40

£5,108 taxed at 28% = £1430.24

Total tax = £7,753.64

Your confirmation/clarification would be most appreciated

Joanne

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By Jo17
10th Oct 2013 17:59

How Does company dividends affect the above?

If we add £13,333.33 gross dividend to the above situation - how does this impact on the cgt calculation?

Thank you in anticipation.

 

 

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By taxhound
10th Oct 2013 18:51

spare personal allowance

is not available to set against capital gains, so if not used elsewhere, it is wasted.

 

Add £13 333 of divi to £6320 or other income and you have used up all of your personal allowance plus £10,213 of your basic rate band using 2013/14 rates.  So more gain is taxable at 28%.

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