Tax deductions on investments

Durace11Bunny

Hi there guys,

Apologies if this has been done 1000 times, but i guess these sort of threads are always a little bespoke to the situation

This year i'll be looking to bed & isa a number of investment funds. Given the recent CGT regime of 'generosity' by the current government, i'm aware that the current allowance is £3k, & tradable amount is 4 x limit (£12k) before needing to declare to HMRC. My aim is to offset gains >£3k by selling on other losses made, which will push me >£12k tradable amount.

My questions are:

• Some of my loses are companies or funds that have gone bust/negligible value/suspended from trading - i presume these can be written off as realised losses (even if it is not physically possible to sell)?

• Some of these losses are from funds or AIM shares - i saw on the Gov website a list of recognised negligible shares. I presume i can still claim, even though my losses are not companies on their list?
• Are there any specific rules to adhere to, in terms of what types of losses can or cannot be claimed (the gov website didn't mention any i could find)?
• When claiming losses, is it simply a case of reporting: gains - losses made, or do negligible value shares need to be reported a different way?
• Presumably, other things can be claimed, such as any dealing funds made during the tax year, platform fees, fund management fees, etc?

Hopefully all nice and straightforward, so thanks very much for your time and help

Regards

DB

eskbanker

Durace11Bunny said:

i'm aware that the current allowance is £3k, & tradable amount is 4 x limit (£12k) before needing to declare to HMRC.

Not sure what you mean by "tradable amount" being 4 x limit but you need to report net gains if total proceeds exceed £50K (instead of the old threshold of four times annual exempt amount) and you already self-assess.  If you don't already self-assess then you only need to report if net gains exceed the annual exempt amount (£3K).

Durace11Bunny said:

• Some of my loses are companies or funds that have gone bust/negligible value/suspended from trading - i presume these can be written off as realised losses (even if it is not physically possible to sell)?

• Some of these losses are from funds or AIM shares - i saw on the Gov website a list of recognised negligible shares. I presume i can still claim, even though my losses are not companies on their list?
• Are there any specific rules to adhere to, in terms of what types of losses can or cannot be claimed (the gov website didn't mention any i could find)?
• When claiming losses, is it simply a case of reporting: gains - losses made, or do negligible value shares need to be reported a different way?

https://www.gov.uk/guidance/negligible-value-agreements and https://www.gov.uk/capital-gains-tax/losses explain.

Durace11Bunny said:

• Presumably, other things can be claimed, such as any dealing funds made during the tax year, platform fees, fund management fees, etc?

https://www.gov.uk/tax-sell-shares/work-out-your-gain - you can allow for dealing costs but not ongoing monthly/annual fees.

Durace11Bunny

Hi there,

Thanks for dropping a line

Apologies - my terminology wasn't great. By tradable amount, i meant total proceeds exceeding 4 x CGT allowance of £3k (so £12k in total)

[Deleted User]

Durace11Bunny said:

Hi there,

Thanks for dropping a line

Apologies - my terminology wasn't great. By tradable amount, i meant total proceeds exceeding 4 x CGT allowance of £3k (so £12k in total)

It’s no longer 4x exempt amount. It’s £50000. The example you attached was from 2020!

https://assets.publishing.service.gov.uk/media/660bbb5e91a3206e4382b06b/SA108_Notes_2024.pdf

Durace11Bunny

Ah many thanks - i was struggling to find something and that was the best i could get hold of