Capital Gain Tax

Landlord Discussion
1

Hi All,

When your capital gain gets complicated it gets a bit more confusing and hoping someone can help!

2 Questions below:

  1. I was trying to understand, when you are Investing in Shares if you made over 12,300 this year you pay 10% tax for basic tax payer, whilst 18% for selling a property.

However, if you have a gain of 12.3K from shares and 12.3k in selling property, wouldn’t the the order make a difference for completing the same tasks? i.e sell shares first sell house second then you will be paying 18% on the extra 12.3K gain, but if you swap the order it would end up paying 10%? Am I right in thinking that?

  1. My separate second question is, Let’s say you made a loss on your share investment, let’s say -10K, so it accounts for the loss and you will be paying tax if you gained over 22.3k for selling your property in the same year. Is that correct or the loss can be carried over to the next year?

Any suggestions will be greatly appreciated!

Regards,

2

Hi Dave

You can offset the cgt allowance against property gains. Order you sell them in doesn’t matter.

You can offset losses against gains as long as losses claimed on tax return. You have 4 years to claim a loss.

3

Thanks Richard! So why the order doesn’t matter given my example above then would it be 10% or 18%? or did I misunderstand the concept?

when you say 4 years to claim a loss as once claimed this loss can remain there until it is offset by gain until whenver?

4

It would be 10% on the shares as the gain from property would be set against the cgt allowance.

Yes, to second question

5

But if i sell shares first then it uses up the cgt allowance and sell house later it would be 18% wouldn’t it? or you mean HMRC would have an order i.e. the one pays higher tax use the allowance first?

6

You would have until jan 2022 to pay cgt on shares sold in 20/21 tax year so you wouldn’t have normally used the allowance by the time you will have sold the property. Property tax must be paid within 30 days of the sale so would be done first. Overall position will be sorted when you do your tax return.

7

Hello everyone, I am a first time landlady, I just got an email from my tenants that they are leaving in 3 months.
I want to see the house and was wondering is this is a good time and if you know how the capital gain tax is calculated.

Thank you
Sung

8

Try this online calculator. Tax when you sell property: Work out your gain - GOV.UK

10

The main thing to be aware of now is that you have to file a return and pay the tax within 30 days of completing, and, apparently (well it does for agent registration, so I can’t see that individual would be any better!), it can take a while to register for the system, so don’t leave it until you complete.

1 Like
11

Hello Cath2,

Thank you so much for your reply and the information, can I register once I put the house on the market? Just to make sure I do not miss the deadline.
Will the estate agent calculate the amount for me or do I need to do this step?
Many apologies, I am not very familiar with this.
Thank you so much for your help, it is much appreciated.

12

Thank you so much David, I really appreciate this Link

13

You can register whenever you want.

If you don’t want to calculate the gain yourself, you will need an accountant - the estate agent won’t do it. An accountant can also file the return for you.

If you want to look at doing it yourself, the HMRC guidance is here: Tax when you sell property - GOV.UK

14

thank you so much for all this information Cath2. I really appreciate this