Capital gains tax reporting - currently when gross proceeds are 4 times the allowance 17 November 2022 at 4:32PM in Savings & investments 17 replies 1.3K views

EthicsGradient

The current rule is that you have to give a full report of any capital gains tax calculation to HMRC if either the total gross gain (not counting any losses) is more than the annual tax free allowance, or if the gross proceeds are more than four times the allowance - so, this year, a gross gain of over £12,300, or gross proceeds of over £49,200.

They're cutting the allowance to £3,000 by 2024-25; are they still going to say "gross proceeds of four times that", ie just £12,000? They may get a lot more returns and paperwork if they do. Anyone any idea, or where they may clarify this?

talexuser

That's the situation at present, unless the budget fine print that's reported in the coming days changes anything.

Swipe

It's hardly worth harvesting when it gets to £3K. I rather just make £3K on some small CFD swing trades over twelve months instead.

Notepad_Phil

Are you talking about reporting through self assessment, or is this some other reporting that people who don't have to do self assessment will need to do?

diystarter7

This new tax hit will massively hit the small time shares investor/gambler, what is the point of the risk-taking, not a lot. I'll be selling the few shares I have bought as a pure gamble now paying off and ready to cash in soon.

ColdIron

Notepad_Phil said:

Are you talking about reporting through self assessment, or is this some other reporting that people who don't have to do self assessment will need to do?

Reporting via Self Assessment

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

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

eskbanker

Notepad_Phil said:

Are you talking about reporting through self assessment, or is this some other reporting that people who don't have to do self assessment will need to do?

The reporting obligations aren't limited to self-assessors:

https://www.gov.uk/report-and-pay-your-capital-gains-tax/print

Edit: ignore this, see clarification below

Notepad_Phil

eskbanker said:

Notepad_Phil said:

Are you talking about reporting through self assessment, or is this some other reporting that people who don't have to do self assessment will need to do?

The reporting obligations aren't limited to self-assessors:

https://www.gov.uk/report-and-pay-your-capital-gains-tax/print

I must be missing something, but if someone is a UK resident and is not on self assessment and they've sold (let's say) £50k of shares but are still within the cgt allowance then I don't see anything on that page which says they need to use the ‘real time’ Capital Gains Tax service.

ChilliBob

So to be clear, if you sell something like £100k of shares in a global index, and make say £5k of gains on that.. You need to declare it, and all of the unshelterd transactions. You'll not need to pay any tax though (for now, obvs when the limits are lowered ) 

ColdIron

For reporting it depends upon whether you're registered for Self Assessment or not. See my post above

NB If you make a gain of £5,000 in 2024/25 you will be liable for CGT as the gain will be above the Annual Exempt Amount threshold of £3,000 at that time

eskbanker

Notepad_Phil said:

eskbanker said:

Notepad_Phil said:

Are you talking about reporting through self assessment, or is this some other reporting that people who don't have to do self assessment will need to do?

The reporting obligations aren't limited to self-assessors:

https://www.gov.uk/report-and-pay-your-capital-gains-tax/print

I must be missing something, but if someone is a UK resident and is not on self assessment and they've sold (let's say) £50k of shares but are still within the cgt allowance then I don't see anything on that page which says they need to use the ‘real time’ Capital Gains Tax service.

Sorry, yes, the real time facility is an alternative to self-assessment reporting but if not self-assessing then there is no obligation to report gains simply by virtue of the proceeds being above the four times multiplier, as @ColdIron has pointed out.