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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3930
Experience:  FCCA FCMA CGMA ACIS
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are the capital gain tax personal allowance and personal tax

Customer Question

are the capital gain tax personal allowance and personal tax allowance then same. if I made a profit before lost ( selling shares on Ftse100) of £ 23000 and lost £ 18000 . do I still need to pay take on the deference ? The personal tax allowance on shares is £10600. but when I filled the self assessment tax form its stipulate that I own tax.
am a bit confused I thought personal allowance and capital gain tax allowance are separate ?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

You are correct, they are! The Personal Allowance for 14/15 is 10K and is set against earnings for Income Tax. The Capital Gains Tax (CGT) Annual Exempt Allowance is 11.1K, an entirely different kettle of fish. You made gains and losses so the net position liable to CGT; 23K - 18K = 5K, well below even the 13/14 limit of 10.9K. It would appear that you are not liable for CGT on your dealings for the year in question.

Don't forget that you have to fill in one of the supplementary forms to declare your capital gains position. I do hope I have thrown some light on your question.
Customer: replied 3 years ago.

so when completing the self assessment form there is no need for me to include my PEYE income in it then. ?

Expert:  bigduckontax replied 3 years ago.
Yes, you have to declare that in the 'Employment Income' section, the first bit you came to after all the administrative waffle on the front of the form.

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