Discussion
I'm thinking of disposing of a BTL and am running the numbers. Looks like Private Residence Relief (I lived in it for 5 years) and Lettings Relief will reduce any CGT liability to zero.
Does this leave my CGT allowance (£11,700) and any losses carried forward from previous years (share losses) 'intact' or do I have to apply these before the aforementioned reliefs?
I think the answer is that they don't factor and will remain available for use against other disposals, but I thought I'd ask the collective wisdom of PH how these interact...
Your annual CGT allowance is exactly that, annual. It is attached to a specific tax year and cannot be carried forward or back.
If the basic calculations show that the gain onnyour property disposal is eliminated by Main Residence Relief and Commercial Lettings Relief and you don't need to use the Annual CGT Allowance, that means that the unused Annual CGT allowance is "lost" for that tax year.
Capital Losses that you have already "clocked up" and are being carried forward for offset against future Capital Gains will still be available to be offset against future gains if you have had no call to make use of them.
If the basic calculations show that the gain onnyour property disposal is eliminated by Main Residence Relief and Commercial Lettings Relief and you don't need to use the Annual CGT Allowance, that means that the unused Annual CGT allowance is "lost" for that tax year.
Capital Losses that you have already "clocked up" and are being carried forward for offset against future Capital Gains will still be available to be offset against future gains if you have had no call to make use of them.
Gassing Station | Finance | Top of Page | What's New | My Stuff