CGT on property ?.

[blade7]

Is CGT relief allowed for less than a full year of ownership ie would there be 50% of the yearly allowance for 6 months ownership ?. Thanks

[Eric Mc]

That's not the way it works.

The CGT Annual Allowance is exactly what it says - an annual allowance.

If you have a capital disposal in the year, you are allowed offset the Annual Allowance against the gain arising.

It doesn't matter how long you have owned the asset - if you make a gain on disposal, you can offset the Annual Allowance.

Note that the allowance can only be claimed once in any given tax year - so if you had three capital disposals in the tax year and the total of all the gains came to £30,000, you can only offset the one annual allowance against that £30,000.

[blade7]

Thanks, so If I owned a property for 2 years do I add the £10600 from last year to the £10900 for this year making £21500 or is it just £10900 ?.

[uknick]

No, it's an annual allowance; so just the amount applicable to the tax year in which you make the disposal.

[Eric Mc]

Precisely.

And that £10,900 only gets used the once. If you made another gain in the tax year, you would have no remaining CGT allowance for that year.

[blade7]

I see, thanks guys.