Old and New CGT rates .....

[halesk1]

Hello. Is there a kind CGT expert here who can advise on the following please, relating to the change in CGT rates on 30 Oct 2024?

Applying basic rates only, and ignoring the £3,000 annual exemption, imagine I’ve realised a gain on the sale of shares in Sept 2024 of £2,000. I’d be charged CGT at 10%, so £200.

Then in Nov 2024 I realise a loss of £1,000 on the disposal of shares (my only disposal in that tax-year post 30 Oct). Would that loss generate a tax credit of £180 (applying the new 18% basic rate), so my net CGT liability would be £20 (£200 - £180)?

Or would the tax credit be at the old 10% rate, matching the rate I’d been charged CGT on the pre-30 Oct gain - so a net CGT liability of £100 (£200 - £100)?

I’m guessing it would be the latter, but I can’t find anything online to say one way or the other! Thank you.

[AGoodman]

The system doesn't work on tax credits. You can set losses against gains in the way most beneficial to you. You then apply the tax rate to the net gain.

That means you would reduce the gain by £1,000, leaving £1,000 of gain at the 10% rate (assuming basic rate) so tax of £100.

[halesk1]

The system doesn't work on tax credits. You can set losses against gains in the way most beneficial to you. You then apply the tax rate to the net gain.

That means you would reduce the gain by £1,000, leaving £1,000 of gain at the 10% rate (assuming basic rate) so tax of £100.

Thanks for reply, that’s helpful.