How does the tax man know what we get up to ?

missile

Maybe no use to you now..... but if you had your own house in your name and mothers in her or your wife's name you would have avoided capital gain. Do not forget that you can offset any expenditure on the propery and if you had no other capital gains your bill may be zero. Write to Inlad Revenue they will give you an estimate for free.

Have you thought about gifting property to kids?

missile

Merlin_of_Altofts wrote:

Thanks MikeYorks,

I have been contacted by my own bank in the past when I put a decent cheque through from a long awaited policy and I think that they have to tell the taxman, although of course they may well be trying to flog me something as well !

Money laundering regulations require financial institutions to declare any large payment - I believe the limit is £5,000. Similarly they are required to declare any interest payments above £ .....

WHA

Merlin_of_Altofts wrote:

I am self employed, my wife is employed and as far as HMRC are concerned I have to declare the gain in my tax year that ends in January 2008 to pay in Jan 2009 but my wife has to declare it this year -sale before April and pay her share in January 2008. I calculate that with a decent stay of executiuon for paying, we should at least accumulate a decent amount of interest. Any suggestions where best to put it ? We have two kids and already use their savings account - obviously for the best interests of the kids !!

No, both your shares will go on your 2006/7 tax return with tax due in January 2008 if the property is sold before 5/4/07. You are getting confused with your business year end I think, but as this is a capital gains tax issue, and not business trading income tax, the business year end is not relevant. Capital gains tax always works in tax years, not business years.

Mikeyorks

Merlin_of_Altofts wrote:

I have been contacted by my own bank in the past when I put a decent cheque through from a long awaited policy and I think that they have to tell the taxman, although of course they may well be trying to flog me something as well !

They have to advise HMRC of the interest aspect. But only for Money Laundering where there is reason of suspicion ... and it's probably dubious that would occur if the policy was 'household name'.

So ... they probably were trying to sell you something you couldn't possibly do without?