Question:
How do I calculate my capital gains tax with an allowable loss? I will be selling a property which has a capital gain of around £45,000. The capital loss from selling my stocks and shares is £20,000. What is the calculation of how much capital gains tax (CGT) I pay?
Arthur Weller replies
See HMRC’s Capital Gains Manual at CG21520. You simply deduct the £20,000 from the £45,000, leaving £25,000. From the £25,000, you can deduct the annual exemption and pay CGT on the remainder.
