When will any changes in Capital Gains Tax take effect?

km1500

you are correct, and can carry forward any previous year's losses as well

DRS1

JeffMinter said:

I can negate my CGT gains with losses, right? So if I made a £1k profit from company A shares, but sold company B shares at a £1k loss, would that mean 0 with regards to Capital gains?

Yes but it will be interesting to see what happens where you make the gains  and the losses either side of 30 October especially where the losses do not fully offset the gains.  How will they decide which side of the line the aggregate gain falls?

Nova1307

IanManc said:

Nova1307 said:

JamesRobinson48 said:

ColdIron said:

Chancellor Rachel Reeves has announced that CGT will rise from 20% to 24% at the higher tax rate. 

The lower CGT rate will rise from 10% to 18%. 

The new rules will come into effect from 5 April 2025 and are expected to raise £25bn.

I think not: it looks like the new rates come into effect today. From HM Treasury main budget pack, para 2.48:

The main rates of CGT are currently charged at a lower rate of 10% and a higher rate of 20%, and these will be increased to 18% and 24% respectively from 30 October 2024.

https://assets.publishing.service.gov.uk/media/6722120210b0d582ee8c48c0/Autumn_Budget_2024__print_.pdf

Ouch!

I read that many BTL landlords were selling up in anticipation of tax (presumably CGT) going up in this budget but it looks like residential property is not in the scope of these rises (applies to shares and other such assets). Only stamp duty on second properties has gone up but that will only impact future property transactions.

Residential property gains were already taxed at 18% and 24%. The rates on everything else have been raised to match.

Yes I was aware of that. They could still have been increased further today but obviously were not. 

Nova1307

DRS1 said:

JeffMinter said:

I can negate my CGT gains with losses, right? So if I made a £1k profit from company A shares, but sold company B shares at a £1k loss, would that mean 0 with regards to Capital gains?

Yes but it will be interesting to see what happens where you make the gains  and the losses either side of 30 October especially where the losses do not fully offset the gains.  How will they decide which side of the line the aggregate gain falls?

The gain crystalises at the point you sell the shares. It doesn't matter if most of the gain was accrued pre October 30th. It's all unrealised until the sale is executed. 

I keep screenshots of share trades from the Trading212 app which shows exactly the date and time of the trade and the number of shares traded and price.

poseidon1

This maybe a good time to take a critical look at one's GIA portfolio and clear out the persistent under performers showing a loss.

Since losses can be carried forward indefinitely, taking the hit now may benefit the portfolio longer term in sheltering some of the future residual portfolio gains.

Alternatively, if one has isa allowances left ( or spouse isa allowance ), then 'isa bed and breakfast ' the loss making share and reacquire in the ISA. Same outcome with regard to the GIA realised allowable loss, but you get to keep the holding ( subject to dealing costs) , if you have faith in its recovery prospects.

Sadly this bed and breakfasting isa technique not available for unit trust funds , just shares and etfs.

masonic

poseidon1 said:

Alternatively, if one has isa allowances left ( or spouse isa allowance ), then 'isa bed and breakfast ' the loss making share and reacquire in the ISA. Same outcome with regard to the GIA realised allowable loss, but you get to keep the holding ( subject to dealing costs) , if you have faith in its recovery prospects.

Sadly this bed and breakfasting isa technique not available for unit trust funds , just shares and etfs.

What makes you think Bed & ISA works differently for unit trusts and shares?

artyboy

dunstonh said:

TBC15 said:

For the hard of thinking, will my UTs I sold in late April this year be subject to 10% or 18% CGT?

Trades made today onwards would be.  Trades made yesterday or earlier would not be.

Well that's just the cherry on the great steaming brown pile of cake that I've been served today... I was thinking about taking the 10% hit on some unwrapped shares, but nope, another door slammed shut.

Let's see if a glass/vat of wine will change my immediate desire to quit this manky little island for good... as if Brexit wasn't reason enough...

DRS1

Nova1307 said:

DRS1 said:

JeffMinter said:

I can negate my CGT gains with losses, right? So if I made a £1k profit from company A shares, but sold company B shares at a £1k loss, would that mean 0 with regards to Capital gains?

Yes but it will be interesting to see what happens where you make the gains  and the losses either side of 30 October especially where the losses do not fully offset the gains.  How will they decide which side of the line the aggregate gain falls?

The gain crystalises at the point you sell the shares. It doesn't matter if most of the gain was accrued pre October 30th. It's all unrealised until the sale is executed. 

I keep screenshots of share trades from the Trading212 app which shows exactly the date and time of the trade and the number of shares traded and price.

What I had in mind was something like this.  I sell shares before 30 October and make a gain of £10k and a loss of £6K so pre 30 October gain is £4k.  Then I sell more shares after 30 October and make a gain of 10K and no losses so post 30 October gain is £10k  Total gain for the year is £14K  less £3K gives chargeable gain of £11K.  What rate(s) apply to the £11K?  Is it 28% on 10K and 20% on £1k?  Or can I put more of the £3K allowance against the post 30 October gain?  If I apportion it is it time based or gain based eg 10/14 x £3k to set against the 10K gain post 30 October?
These are of course figures I have just made up!

Nova1307

DRS1 said:

Nova1307 said:

DRS1 said:

JeffMinter said:

I can negate my CGT gains with losses, right? So if I made a £1k profit from company A shares, but sold company B shares at a £1k loss, would that mean 0 with regards to Capital gains?

Yes but it will be interesting to see what happens where you make the gains  and the losses either side of 30 October especially where the losses do not fully offset the gains.  How will they decide which side of the line the aggregate gain falls?

The gain crystalises at the point you sell the shares. It doesn't matter if most of the gain was accrued pre October 30th. It's all unrealised until the sale is executed. 

I keep screenshots of share trades from the Trading212 app which shows exactly the date and time of the trade and the number of shares traded and price.

What I had in mind was something like this.  I sell shares before 30 October and make a gain of £10k and a loss of £6K so pre 30 October gain is £4k.  Then I sell more shares after 30 October and make a gain of 10K and no losses so post 30 October gain is £10k  Total gain for the year is £14K  less £3K gives chargeable gain of £11K.  What rate(s) apply to the £11K?  Is it 28% on 10K and 20% on £1k?  Or can I put more of the £3K allowance against the post 30 October gain?  If I apportion it is it time based or gain based eg 10/14 x £3k to set against the 10K gain post 30 October?
These are of course figures I have just made up!

I'm not a tax advisor and can't advise you on that but what I do know is that you have to report individual gains/losses in the CGT section of your tax return and enter the date on which the gain/loss was realised. I would guess that HMRC's software would then apply the correct CGT rate depending on the date the shares were sold but perhaps someone else can clarify that. 

EthicsGradient

DRS1 said:

Nova1307 said:

DRS1 said:

JeffMinter said:

I can negate my CGT gains with losses, right? So if I made a £1k profit from company A shares, but sold company B shares at a £1k loss, would that mean 0 with regards to Capital gains?

Yes but it will be interesting to see what happens where you make the gains  and the losses either side of 30 October especially where the losses do not fully offset the gains.  How will they decide which side of the line the aggregate gain falls?

The gain crystalises at the point you sell the shares. It doesn't matter if most of the gain was accrued pre October 30th. It's all unrealised until the sale is executed. 

I keep screenshots of share trades from the Trading212 app which shows exactly the date and time of the trade and the number of shares traded and price.

What I had in mind was something like this.  I sell shares before 30 October and make a gain of £10k and a loss of £6K so pre 30 October gain is £4k.  Then I sell more shares after 30 October and make a gain of 10K and no losses so post 30 October gain is £10k  Total gain for the year is £14K  less £3K gives chargeable gain of £11K.  What rate(s) apply to the £11K?  Is it 28% on 10K and 20% on £1k?  Or can I put more of the £3K allowance against the post 30 October gain?  If I apportion it is it time based or gain based eg 10/14 x £3k to set against the 10K gain post 30 October?
These are of course figures I have just made up!

I suspect that you would be able to apply the £3k allowance where it helps you the most, ie in the post-October period (ie 4k taxed at 20%, (10k-3k)=7k taxed at 24% (the higher rate for shares CGT has gone up to 24%, not 28%, so it matches the property rate). There was a mid-year change in CGT rates in 2010, I think, and I seem to remember seeing a worked example from then in which the allowance was used to the best advantage of the taxpayer. I'll see if I can find it again.

This may have been it - it does seem to say that, anyway (the background is that up to June 2010, all CGT was at 18%; after the emergency Budget, high rate payers paid at 28%):

Example 1
In 2010-11 X's taxable income, after all allowable deductions and the personal allowance, is £27,400. The upper limit of the income tax basic rate band is £37,400. X sells an asset in May 2010 and realises a chargeable gain of £17,000. In November 2010 X sells another asset, realising a chargeable gain £25,100. X has no allowable losses to set against these gains, and the AEA for 2010-11 is £10,100. Neither of the gains qualifies for entrepreneurs' relief.
X's taxable income is £10,000 less than the upper limit of the basic rate band (£37,400 - £27,400). X sets the AEA against the later gain (because part of that gain is liable to tax at the higher CGT rate), leaving £15, 000 taxable (£25,100 - £10,100). The first £10,000 of the £ 15,000 is taxed at 18 per cent and the remaining £5,000 is taxed at 28 per cent. The £17,000 chargeable gain X realised in May 2010 before the change of rates on 23 June 2010 is taxable at the old 18 per cent rate.

BN20 CAPITAL GAINS TAX: RATES AND ENTREPRENEURS' RELIEF | Croner-i Tax and Accounting