Does taking out your gains count towards taking out your initial allowance?

Asked 4 years ago

Let’s say your limit is 70k and you transfer in 50k. You then double your money to 100k. If you then take 40k out, does your limit drop to 10k for the next calendar year? Basically my question is does taking out your gains count towards taking out your initial allowance?

Long-term capital gains Gains and losses record Initial allowance

Osasere Okunloye

Saturday, July 17, 2021

No, it doesn't. Your new limit is the difference between your initial limit and your deposit or contribution. Your initial limit is 70k and you contributed 50k, the difference is 20k. This means that you still have 20k worth of room regardless of your gains and losses.