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CGT calculation

I have sold 2 assets in same tax year. Is there a rule how HMRC will apply CGT at differing rates?

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I have sold two properties in the same tax year (careless I know, but unavoidable!)

The first sold was a second home, never let and therefore subject to CGT at 18/28%. Profit of £28k. The second was a Furnished Holiday Letting, always let as so and therefore subject to entrepreneur's relief, and a CGT rate of 10%. Profit of £25k.

Having completed by SA return, HMRC have allocated the FHL gain completely to my basic rate band (I had a total income from other sources of 29k) and the other property split between the remainder of the basic rate band and the balance tipping over in to the higher rate band, attracting CGT at 28%

When I had previously done the calculation myself, I had allocated the whole of the sale gain of property 1, less my annual CGT allowance, to the base rate band and the whole of the FHL gain at 10%. This obviously gave a lower tax bill! 

Can anyone advise if I can change the order of computation to my version of the calculation? 

Many thnaks


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By gainsborough
23rd Jan 2020 09:20

No - unfortunately HMRC are correct. Any gains qualifying for the ER rate are treated as using up any remaining basic rate band first.

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