We have a client who made a capital gain of £32,000 on the sale of a commercial property and a gain of £22,500 on the sale of a residential rental property. They have an annual exemption of £12,000 for 19/20. They have employment income of £84,000 during the year.
How is the CGT annual exemption allocated over the two different capital gains?
I have checked HMRC manuals and consulted text books, but can't find an answer.
Could someone help please?
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https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg10246
"...subject to any rules which limit the gains from which losses may be deducted, losses and the annual exempt amount may be set against gains in the way that is most beneficial to the individual."
