Offsetting liabilities

[danash]

Is it possible to offset liabilities in one form of tax ( CGT ) with a lump sum pension payment ?

eg if I owe 10K in CGT can I get a nil tax bill by contributing c24K in a lump sum into my pension ( subject to contribution limits etc)

If not does the pension offset only go against income tax so I would just have a wash between a CGT liability and an income tax rebate?

 

[WaterSprite]

You can't offset a capital gain against a lump sum pension contribution - you can only get tax relief on income tax (from your trade/profession) actually paid in the relevant year.

 

[Graham_07]

Pension contributions (subject to statutory limits) can only be set against Income Tax, not CGT.

 

[danash]

You can't offset a capital gain against a lump sum pension contribution - you can only get tax relief on income tax (from your trade/profession) actually paid in the relevant year.

Ok - as a PAYE worker could I simply pay a lump sum into my Pension and claim the equivalent refund against my income tax and pay the relevant CGT bill in a separate cheque ? I have adequate relevant earnings in the current year.

 

[Graham_07]

Ok - as a PAYE worker could I simply pay a lump sum into my Pension and claim the equivalent refund against my income tax and pay the relevant CGT bill in a separate cheque ? I have adequate relevant earnings in the current year.

Yes. They are, as said, unconnected.

 

[danash]

Thanks - was hoping that was the case..........