allowable expenses on CGT on gold.

lorriman

I believe I can put the cost of purchase against my CGT bill but are there other 'expenses' I can also use, for example the % pa holding fee (the vault charges me a small percentage every year).

chrismac1

First, make sure you have gold in a taxable form:

http://www.taxfreegold.co.uk/capitalgainstaximplications.html

If you do, and you pay CGT this year, consider non-taxable forms. For short term speculation, spread bet futures are my preferred option for both gold and silver.

lorriman

chrismac1 wrote: »

First, make sure you have gold in a taxable form:

...

If you do, and you pay CGT this year, consider non-taxable forms. For short term speculation, spread bet futures are my preferred option for both gold and silver.

Thanks for that.

Unfortunately the gold was not sterling but bullion so I must pay CGT.

Any words on whether I can subtract the above-mentioned expenses?

antrobus

As a general rule, expenditure on improvements to an asset can be deducted from a capital gain, but expenditure on maintenance of an asset cannot. So I'd hazard a guess that the answer to the question asked is 'no'. But that is a guess.

lorriman

Ok, great. Thanks for that, Antrobus.

The-Joker

Very interesting, and can anyone tell me what is the thresh hold you have to be under so as not to pay cap gains on bullion? When the time come that gold and silver are looking overvalued can you slowly sell off and keep your profit under the limit (is it £10K yr?)

Would you have to report it, or as long as under the limit just keep all your paper work in order, but no need to report anything?

chrismac1

Currently 10,600 per person, so 21,200 for a couple.

There is no good reason ever to pay Capital Gains Tax, there are perfectly legitimate, cheap and legal ways of cancelling out a capital gain in any given tax year providing you take action early enough in the tax year.