Investments not in an ISA

DennisTenus

I have some investments in one of Nutmeg's funds or whatever they are, not in an ISA because I'd already subscribed to an ISA that tax year. Does this mean if I sell it the profit is classed as CGT?

It’s under the CGT limit so assume I don’t have to declare it to HMRC?

However, if it was going to be over the £12,300 CGT limit, is it acceptable to sell half of it one year to keep my profit under the CGT threshold and then the rest the next tax year for example?

Thanks

Linton

Yes to all 3 questions:
If you sell an investment at a profit you have made a capital gain which is potentially liable to CGT if not in a pension or ISA.
You don’t have to declare a capital gain to HMRC if it is within your allowance unless they ask you.
You can arrange the sale of investments to minimise CGT. You would be foolish not to.

DennisTenus

Thanks, so do companies like Nutmeg not report to HMRC in the same way that the banks do about interest earned on non ISA accounts?

TBC15

Are you subject to self assessment? If so you will have to report any disposal over 4 x your CGT allowance.

Alexland

Dont forget that Nutmeg portfolios are built from ETFs so some of your gain may also be dividends.

badger09

DennisTenus said:

Thanks, so do companies like Nutmeg not report to HMRC in the same way that the banks do about interest earned on non ISA accounts?

You're comparing apples with pears.

Banks report interest to HMRC. They do not report every deposit to, or withdrawal from, an interest bearing account.

masonic

Investment firms cannot report Capital Gains to HMRC because the necessary calculations require information about the investors entire trading activity, of which they might only see a part.

DennisTenus

TBC15 said:

Are you subject to self assessment? If so you will have to report any disposal over 4 x your CGT allowance.

Nope, why do you have to report any disposal over 4 times? Wouldn't it be any amount over CGT allowance?

Alexland said:

Dont forget that Nutmeg portfolios are built from ETFs so some of your gain may also be dividends.

I see so those would be included as my dividend allowance?

masonic said:

Investment firms cannot report Capital Gains to HMRC because the necessary calculations require information about the investors entire trading activity, of which they might only see a part.

I see, so it begs the question how do HMRC find out about capital gains over the threshold if the person in receipt of them doesn't inform them?

eskbanker

DennisTenus said:

TBC15 said:

Are you subject to self assessment? If so you will have to report any disposal over 4 x your CGT allowance.

Nope, why do you have to report any disposal over 4 times? Wouldn't it be any amount over CGT allowance?

It's either, the four times disposal value (not gain) point is covered at https://www.gov.uk/capital-gains-tax/work-out-need-to-pay

You still need to report your gains in your tax return if both of the following apply:

• the total amount you sold the assets for was more than 4 times your allowance
• you’re registered for Self Assessment

masonic

DennisTenus said:

I see, so it begs the question how do HMRC find out about capital gains over the threshold if the person in receipt of them doesn't inform them?

Not a subject that is allowed to be discussed in detail on this forum, but in general terms they find out in the same sort of ways that other types of fraud are identified by the authorities.

John464

Trying to get through on the helpline & webchat is hopeless
Anyone know if there is an easier way to declare your dividends to HMRC? address to write to?