Capital gains tax reporting - currently when gross proceeds are 4 times the allowance

Notepad_Phil

eskbanker said:

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.

No problem. Just wanted to check to make sure as it wouldn't be the first time where my previous understanding of tax matters differs from what HMRC actually says in the depths of their manuals.

aroominyork

diystarter7 said:

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.

Maybe it will spur you to move the money into a SIPP or other tax-sheltered vehicle and consider it investing rather than gambling. That might be a good thing.

EthicsGradient

And it turns out that HMRC don't want all that extra reporting - they are going to fix the reporting proceeds limit at £50,000 from next year:

Proposed revisions
Legislation will be introduced in the Autumn Finance Bill 2022 amending section 1K to reduce the AEA to £6,000 for tax year 2023 to 2024, with a further reduction to £3,000 for tax year 2024 to 2025 and subsequent tax years. The AEA available to most trustees will remain at one half that due to individuals.
That legislation will also abolish the annual uprating of the AEA with CPI and fix the CGT reporting proceed limit at £50,000.

https://www.gov.uk/government/publications/reducing-the-annual-exempt-amount-for-capital-gains-tax/capital-gains-tax-annual-exempt-amount

jimjames

diystarter7 said:

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.

Why not use an ISA to avoid that problem?

Hermann

The following page has a useful flow chart indicating when to report and when not, also covers self assessment or real time.

Edit: I've removed the link as it seems the flow chart may contain some errors.

masonic

Hermann said:

The following page has a useful flow chart indicating when to report and when not, also covers self assessment or real time.
https://www.rossmartin.co.uk/private-client-a-estate-planning/capital-gains-tax/3350-reporting-capital-gains#at-a-glance

I posted that in another thread a while ago, but it is wrong and should not be trusted. You do not need to register for Self Assessment (or use the real time reporting service) just because you have disposals exceeding 4 x AE (soon to be £50k) as this flow chart suggests.

See https://forums.moneysavingexpert.com/discussion/comment/79545751/#Comment_79545751

Hermann

masonic said:

Hermann said:

The following page has a useful flow chart indicating when to report and when not, also covers self assessment or real time.
https://www.rossmartin.co.uk/private-client-a-estate-planning/capital-gains-tax/3350-reporting-capital-gains#at-a-glance

I posted that in another thread a while ago, but it is wrong and should not be trusted. You do not need to register for Self Assessment (or use the real time reporting service) just because you have disposals exceeding 4 x AE (soon to be £50k) as this flow chart suggests.

See https://forums.moneysavingexpert.com/discussion/comment/79545751/#Comment_79545751

Thanks for the heads up, I've edited my post accordingly.
Shame as the flow chart seems otherwise helpful and easy to understand.