capital gains on shares

theGrinch

last week I sold some shares and made a profit (£700) on them. No other CGT gains or losses for the year. I dont usually complete a tax return.

Will I need to submit a return or inform HMRC of the gain?

00ec25

why don't you try researching yourself, these are simple questions with simple answers readily avialable from HMRC and direct gov

annual allowance here

tax return rules here

theGrinch

I thought it was a forum for questions and answers as part of research and hoping for a quick answer.

You I have been told by an accountant that I do, but another accountant (ex HMRC) has said that you dont unless you normally complete a tax return. I tend to be in agreement with the latter as it is a small gain on a low volume.

gadgetmind

theGrinch wrote: »

Will I need to submit a return or inform HMRC of the gain?

Probably not. You only need to tell HMRC if you exceed your CGT allowance or if value of the shares sold was over (from memory) £40k.

noh

You could look it up yourself and get a quick and accurate answer.

I've done it for you.

from http://www.hmrc.gov.uk/cgt/intro/report-gain.htm



"You also don't need to report your gains if all of the following conditions are met:

• You have no Capital Gains Tax to pay.
• Your total gains (before you deduct any losses) are equal to or lower than the annual tax-free allowance (£10,100 for 2010-11 for individuals. The budget proposes this will rise to £10,600 for 2011-12).
• Your total 'disposal proceeds' - usually the amount you receive when you sell or dispose of an asset - are no more than four times the tax-free allowance (that is no more than £40,400 for individuals in 2010-11 - the budget proposals will increase this to £42,400 for 2011-12).
• You're resident and domiciled in the UK (usually this means that you live here and your permanent home is here, but see the link below for more on 'residency,, 'domicile' and taxes)."

jimmo

It was a simple question but, sadly, no one has given the simple answer which is "No".
From the link posted by noh
"Before you do anything else, you need to work out if you have Capital Gains Tax to pay."
The annual exempt amount for the current year is £10,600 and so a capital gain of £700 is well and truly covered.
Therefore the OP has no Capital Gains Tax to pay.
Again from the link
"If you don't normally make a Tax Return and have Capital Gains Tax to pay, you'll need to register for Self Assessment."
So, no Capital Gains Tax to pay, no need to register and therefore no need to even contact HMRC.

CLAPTON

well, it is possible that a gain of 700 was made on a disposal of 44,000 worth of shares

theGrinch

thanks everyone. I managed to speak with someone at HMRC (I know a rarity) and they confirmed the key point which I wasn't 100% on and that no return is required provided the assets sold are below £42,400 for 2011-12.

jimmo

CLAPTON wrote: »

well, it is possible that a gain of 700 was made on a disposal of 44,000 worth of shares

Perfectly true, the disposal could even be for £100k but it wouldn't make any difference.
The OP would still be in the same situation.
He is not normally required to complete Tax Returns and, as he is not liable to Capital Gains Tax, he is not required to (Notify Liability) request a Return.
If he is not required to complete a Return there is no point in worrying about the rules that apply to Returns.
This was discussed in a bit more detail in this earlier thread.

https://forums.moneysavingexpert.com/discussion/2915004