Capital Gains Tax: do I need to submit anything to HMRC if my gains are less than the allowance?

DamonJF

Hi MSE and forum members,

First time posting here so apologies if this has been asked before (I did look!). I have just sold my flat (my sole owned property) for just under £150K having bought it in 2014 for £138,250. As I understand it I do not need to pay any capital gains tax as the allowance is £12,300 and I have not factored in the year and a bit I lived there prior to letting it out or any legal fees from the sale and purchase of the flat. However, do I still need to submit the sale online with the HMRC within 60 days or just retain a copy of my two completion statements and not report anything? Thank you in advance.

dimbo61

I would 100% report it with all the evidence  you have to show with buying and selling prices.
You have the CGT allowance and buying and selling costs to take into account 

km1500

If your total gains are less than the tax-free allowance

You do not have to pay tax if your total taxable gains are under your Capital Gains Tax allowance.

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

DamonJF

Thanks for the replies. I understand that I don't have to pay tax as my total taxable gains are under the allowance so therefore I will be reporting capital gains on the HMRC website of zero. I understand you can upload up to 2 documents to support your submission which will be my two completion statements (purchase and sale)

macman

Easiest way is just to attach a simple spreadsheet giving the figures showing that the gain is below the threshold. In your case, it's below that even before you apply the purchase/sale/improvement deductions.
Good decision to sell before the April cut in the allowance.

Noneforit999

km1500 said:

If your total gains are less than the tax-free allowance

You do not have to pay tax if your total taxable gains are under your Capital Gains Tax allowance.

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

If both of those have to apply, surely the vast majority who are under the allowance won't need to report it?

Sunsaru

Noneforit999 said:

km1500 said:

If your total gains are less than the tax-free allowance

You do not have to pay tax if your total taxable gains are under your Capital Gains Tax allowance.

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

If both of those have to apply, surely the vast majority who are under the allowance won't need to report it?

Don't need to, but I would just to cover my posterior.

The last capital gains calculations I did was on a sheet of A4, hand written. Sent to HMRC and accepted.

macman

Unless the OP is on S/A, they don't need to file. They haven't said. what their employment status is.
Why clog up an already overburdened tax system with unnecessary submissions?

Mutton_Geoff

macman said:

Unless the OP is on S/A, they don't need to file. They haven't said. what their employment status is.
Why clog up an already overburdened tax system with unnecessary submissions?

They must be on self assessment to have filed their rental income accounts.