CGT on property disposal and other Capital Gains in the same tax year

[sentinell]

Hi,

I have a query about the order of calculating gains, especially when total gains involve property and non-property assets, which I can't seem to figure out.

Let's say I make the following gains in the same tax year:

£15,000 on a share portfolio
£100,000 on the sale of a second property.

Assume I have £10,000 of basic rate band remaining, and the full CGT allowance for this tax year.

As the property gain will taxed at a higher rate, it would make sense to apply the CGT allowance to the this gain, and use up as much basic rate band as possible, in order to minimize the amount taxed at 28%.

I guess my question is when working this out, does order of precedence still apply ? i.e. if I realize the gain on the shares, say, 6 months before selling the property.

I hope this makes sense. Any guidance would be appreciated.

Thanks
Neil.

[robbob]

I guess my question is when working this out, does order of precedence still apply ? i.e. if I realize the gain on the shares, say, 6 months before selling the property.

Nope you can allocate as you see fit to keep the tax down.

If you have gains from both residential property and other assets
You can use your tax-free allowance against the gains that would be charged at the highest rates (for example where you would pay 28% tax).

https://www.gov.uk/capital-gains-tax/rates