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Sam, Accountant
Category: Tax
Satisfied Customers: 7509
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I am trying to save on Capital Gains Tax and I read that I

Customer Question

I am trying to save on Capital Gains Tax and I read that I can have an ISA. How does that work then? The article said I could have up to £15K in an ISA< are those 15K free of tax if I take them from the sale of a property and save them? And how long does it have to be saved for before I can use it and not pay taxes? Thank you
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi Thanks for your question - I am Sam and pne of the UK tax experts on Just Answer. and exx HMRC.It is never possible to avoid a capital gain considerationb when disposing of an asset as nothing can negate a position that arises when a profit (Gain) is made. I have a feeling this article merely shows you a tax efficiency process to then NOT pay tax on the future lump sum - But if you could provide me a link to the article I can structure my answer in relation to the article itself. Thanks Sam
Customer: replied 2 years ago.
let me reword this... I mean not to pay CGT on the 15K. Say the 15K is from the sale of house where I make a profit of 70K, however, this house was NOT my main residence, it was a rental property. So I read that if I say, after my 11K allowance for CGT, and then I take the !% and put it in an ISA, then whats left I pay CGT on but not that 15K....
Expert:  Sam replied 2 years ago.
Hi Thanks for your responseNo you are not correct - which is why I am asking for you to provide where you may have established this as fact - with a link to the article you advise you have taken this fromThanksSam
Customer: replied 2 years ago.
sorry, i did not save the link... sorry... so can you just instead explain to me then how does it work? thanks.
Expert:  Sam replied 2 years ago.
Hi How does what work? You will be considered on capital gains for the whole amount - after costs and any reliefs have been taken into account.Then you also have the first &pound;11,100 exempt as this is the annual exemption allowance. But you will be subject to capital gains under the normal rules Thanks Sam