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Actually never mind
found it!
where, how
I was using Virt-Manager on Ubuntu it's just a front end wrapper GUI, according to it you can allocate Current Amount of RAM lets say 512MB then a Maximum allocation of 3024 3GB RAM, if that makes sense? http://virt-manager.org/
So my understanding is that if the VM isn't using over 512MB it won't dip into the maximum allow RAM of 3GB unless it needs to, same goes for the CPU.
In terms of "sharing"/overcommitting memory from the KVM host, you could use ballooning (only supported by Linux guests) and/or kernel sharedpage merging (KSM). Ballooning is what's applied when you use different current/maximum memory values in your virtmanager settings - assuming that it's supported by the guest.
CPU cores are automatically shared unless you apply CPU pinning.
Ahh fair enough seems I was on the right track then, cheers!