capital gain tax on stock market

thenewcomer

is each individual exempted from paying CGT for the first £3k gains, inclusive of the stock market, per annum?

eskbanker

That's an odd way of expressing it but yes, there is an annual CGT exemption of £3K per person, which can be offset against any capital gains realised in any given tax year, regardless of whether they're from property, shares, or other assets.

thenewcomer

eskbanker said:

That's an odd way of expressing it but yes, there is an annual CGT exemption of £3K per person, which can be offset against any capital gains realised in any given tax year, regardless of whether they're from property, shares, or other assets.

If my CGT for the tax year is less than 3K, do I need to do self-assessment?

eskbanker

thenewcomer said:

eskbanker said:

That's an odd way of expressing it but yes, there is an annual CGT exemption of £3K per person, which can be offset against any capital gains realised in any given tax year, regardless of whether they're from property, shares, or other assets.

If my CGT for the tax year is less than 3K, do I need to do self-assessment?

No:

Reporting and paying Capital Gains Tax

You do not get a bill for Capital Gains Tax. You must work out if your total gains are above your tax-free allowance.

If your total taxable gains are above your allowance, you’ll need to report and pay Capital Gains Tax.

https://www.gov.uk/capital-gains-tax/reporting-and-paying-capital-gains-tax

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 £50,000
• you’re registered for Self Assessment

These rules apply from the 2023 to 2024 tax year onwards.

For the tax years before 2023 to 2024, you 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

thenewcomer

eskbanker said:

thenewcomer said:

eskbanker said:

That's an odd way of expressing it but yes, there is an annual CGT exemption of £3K per person, which can be offset against any capital gains realised in any given tax year, regardless of whether they're from property, shares, or other assets.

If my CGT for the tax year is less than 3K, do I need to do self-assessment?

No:

Reporting and paying Capital Gains Tax

You do not get a bill for Capital Gains Tax. You must work out if your total gains are above your tax-free allowance.

If your total taxable gains are above your allowance, you’ll need to report and pay Capital Gains Tax.

https://www.gov.uk/capital-gains-tax/reporting-and-paying-capital-gains-tax

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 £50,000
• you’re registered for Self Assessment

These rules apply from the 2023 to 2024 tax year onwards.

For the tax years before 2023 to 2024, you 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

Thank you. Very helpful.