Selling Unit Trusts and Capital Gains Tax

red.barchetta_2

Hi,

I am after a bit of advice on a very simple matter - and apologies if this has already been discussed elsewhere within this forum.

I took out a unit trust plan in 1998 which I funded £30 in ICVC UK Small Companies and £30 ICVC European fund, making a
total of £60 p/m. To keep the sums simple I have in total invested £10k into the plan. Any dividends this plan earned was
reinvested back into the plan.

The Plan is valued at approx £16k.

Given I am a high-end tax payer, I want to part cash this or all of it. If I sell them all today for example, I assume
I will have to file this on my 2013-14 tax year because the sale was made in tax year 2013-14?

The advice I am seeking is for me to use my 2013-14 CGT allowance when coming to file my tax return this time next year.

My understanding is the CGT allowance for 2013-14 is £10,900 for each individual, which means my gain if I am to sell all
£16k-£10k = £6k. If that is the gain, do I tell the tax authority of the gain, which will be noted, but I will not have to pay
any further tax because my gain is within the allowance? I have NOT sold or intend to sell any any other shares in
2013-14 tax year with fall outside of an ISA.

If my understanding is correct, how do I file the shares which were bought on a monthly basis. Looking at the HMRC website and the tax return form it is not clear how monthly purchases are entered?

If on the other hand I do NOT have to declare this amount because it is below my CGT allowance, then filing my return is easier, although I have a feeling the tax authorities need to know what shares have been sold, and hence have the gain logged?

Am I correct?
Thanks,
Red.

westy22

Read the following link:
http://www.hmrc.gov.uk/cgt/intro/report-gain.htm

Essentially,

If you normally complete a Self Assessment tax return
You'll need to complete the tax return Capital Gains Tax page if either of the following apply:
your chargeable gains - before deducting any losses - are more than the Annual Exempt Amount - £10,600 in 2012-13
the total amount you received from selling or disposing of assets is more than £42,400 in 2012-13

The figures need updating for 2013-14 but the same rules apply

red.barchetta_2

Thanks for the response westy22.
Given my gain is going to be well below the £10.6k mark, do I still have to complete that form?

jimjames

red.barchetta wrote: »

Thanks for the response westy22.
Given my gain is going to be well below the £10.6k mark, do I still have to complete that form?

No. Unless you have any chargeable gains or they are above £40k or so you do not need to report them