CGT - if no gain

ognum

I am a higher rate tax payer and complete a tax return each year.

In the 2016-2017 I sold a second home ( never let, abroad). I have recently completed the accounts on the transaction and I have make £5000 profit. I have no other CGT gains for the year.

Do I have to completed an HMRC declaration for this sale as I have no gain or loss?

Thanks

00ec25

you are already required to complete a tax return, therefore you are required to complete the CGT pages even if the gain is covered by the allowance and there is net zero payable.

The issue is not the profit, it is the gross proceeds...

https://www.gov.uk/capital-gains-tax/work-out-need-to-pay
Even if your gains are below the tax-free allowance, tell HM Revenue and Customs (HMRC) if:

you disposed of chargeable assets with an overall worth of more than 4 times the Capital Gains Tax allowance - this works out as £45,200 for the 2017 to 2018 tax year but was less for previous years
you have losses that you want to claim
Report this in your tax return. If you’re not registered for Self Assessment, you can write to HMRC instead.

EdSwippet

00ec25 wrote: »

The issue is not the profit, it is the gross proceeds... Report this in your tax return...

Yes, that.

If the gain is within the £11,100 allowance for 2016/17 -- and it seems as if it is -- there will however be no additional tax to pay. Just some annoying and ultimately a bit pointless paperwork for HMRC.

[ I'm not sure why this 4x allowance gross proceeds number is so magic when it comes to filling in the CGT part of self-assessment. Why not 2x, or 10x, or something else? Why any number at all? If there's no tax liability then there's no tax liability, no matter what the gross sale proceeds really were. ]