Capital gains on shares - unused Personal Tax Allowance

[quarterp]

If a person earns much less than their personal tax allowance and they sell sufficient shares to make a declared profit of say �12,000 can they offset the rest of their tax allowance on top of the Capital Gains Allowance or is tax payable at 40% on all share profit above the CGA? (which means that tax is payable even though there is unused tax allowance)

[PrinceRainie]

I believe the rate of tax is now 18% opposed to the previous %ages......
Your personal allowance each tax year (CGT Allowance) is �9,200, anything above that is taxable (indexation and taper relief may be available depending on how long the shares have been held). You may be better off just selling up to your allowance and then the remainder in April. You can also offset against any losses you may have suffered........its all very complicated!!!! best to get an accountant to work it out for you!

[dzug]

Prince Rainie is anticipating what will happen next April. At present the answer is a qualified and partial yes:

The amount chargeable to CGT is added onto the top of income liable to income tax for individuals and is charged to CGT at these rates:

below the starting rate limit at 10%,
between the starting rate and basic rate limits at 20%,
and above the basic rate limit at 40%.