CGT - pre & post budget

smith · November 20

Hello there.

We have a client who has had gains pre budget and will have gains after, roughly £2,750 either side. Easy so far as it'll be 20% before and 24% after (HRT payer).

However... How does the annual exempt amount factor into this? The £3k could wipe out one side, but which... I can't seem to find anything that helps... The most sensible option feels that the AEA is used by the earlier gains first?

Thanks in advance...

richardgough · November 21

HMRC CGT Manual under CG18000 says "The AEA can be set off against gains in whatever way is most beneficial to the person concerned."
This has not changed post budget which would imply you can use it against the post budget gain in full.

smith · November 21

Cheers Richard

smith · November 21

interestingly then, as long as you have had gains of up to £3k pre budget, you still have the opportunity to crystallise some gains now taxable at 10/20%

benjaminfabi · November 28

@smith yes you can realise £3k of gains between now and 5 April 2025 and use the AEA against those gains, with the pre 30 October 2024 gains then being charged, at the lower rate.

AF1 test this opportunity occasionally, typically using residential property gains and unit trust gains in the same tax year.

CGT - pre & post budget

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