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bowlhead99

Glen_Clark wrote: »

So am I. As I have never had any further tax liability on dividends or gains I haven't reported it. But this year I have sold £54k of shares to realise £10,900 of Capital Gains. I know this is below the tax free limit of £11,000, so I have no further tax to pay. Nevertheless, I think I still have to report it due to the amount sold?
(To complicate matters further some of the shares were certificated transferred in to my x-o account. As they don't know how much I paid for them they have entered the book cost as zero, making my capital gain look far more than it really is)

You're right, if your disposal proceeds are over 4x the annual allowance you need to declare, whether you have gains over the limit or not - even if you have losses.

Basically if you're realising sale proceeds of 4x the limit and not breaching the limit on gains, you must be investing pretty big amounts compared to the average Joe Bloggs and they would like to receive information on your your gains and losses.

Glen_Clark

bowlhead99 wrote: »

You're right, if your disposal proceeds are over 4x the annual allowance you need to declare, whether you have gains over the limit or not - even if you have losses.

Basically if you're realising sale proceeds of 4x the limit and not breaching the limit on gains, you must be investing pretty big amounts compared to the average Joe Bloggs and they would like to receive information on your your gains and losses.

I have an R40 form to reclaim the tax paid on building society account interest. But there is nowhere on the form to declare share dividends or capital gains?

bowlhead99

Glen_Clark wrote: »

I have an R40 form to reclaim the tax paid on building society account interest. But there is nowhere on the form to declare share dividends or capital gains?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/366957/r40.pdf

For divs you would just do section 3.5, 3.6, 3.7 , or section 6 if foreign. There is a set of guidance notes on the HMRC .gov website too.

The R40 is for dealing with investment income. Any CGT stuff is not investment income so is handled separately, usually in a tax return. Then if you're doing a tax return anyway there's no need to do an R40. If you're making the gains / income this year you can register by October this year for self assesssment and fill out the SA form by next January, unless you particularly want to do it sooner.

Per HMRC (https://www.gov.uk/capital-gains-tax/work-out-need-to-pay):

Sometimes you need to report to HMRC even if your gains are below the tax-free allowance. Send a tax return if:

• you disposed of chargeable assets with an overall worth of more than 4 times the tax-free allowance - this works out as £43,600 for the 2013 to 2014 tax year
• you have losses that you want to claim (if you’re not already registered for Self Assessment, you can write to HMRC instead)

While you can definitely just write them a letter to claim a loss if you're not someone who files a self assessment form, I'm not sure if that extends to the notification of large disposals - the implication from the above would be not, but perhaps it's just a bad layout on their website or guidance notes.

You could always try it, and if they come back and say no they want you to register to file a proper electronic tax return, just do that instead of your R40.

Glen_Clark

Well since I have no tax to pay I wasn't going to bother doing a tax return. But after reading this in today's Telegraph I suppose I had better:
Thousands of people are fined every year for failing to meet the self-assessment deadline. There is an automatic penalty of £100 for filing a late return, even if no tax is owed. After three months, a £10 daily charge kicks in up to a maximum charge kicks in up to a maximum of £900, followed by further penalties at six months and 12 months. This means a taxpayer could owe up to £1,600 in penalties regardless of how much they need to pay. http://www.telegraph.co.uk/finance/budget/11479034/Budget-2015-The-death-of-the-annual-tax-return.html