Capital gains tax pages in self assessment -questions on the calulation details required

talexuser

Has the form changed this year? In previous years I have always sold just below the limit and still had to list each transaction and the form worked out my gain to agree with my figure. This year it just asked any gains over 3k, I ticked no and it said go on to the next section, no details needed. 

masonic

talexuser said:

Has the form changed this year? In previous years I have always sold just below the limit and still had to list each transaction and the form worked out my gain to agree with my figure. This year it just asked any gains over 3k, I ticked no and it said go on to the next section, no details needed. 

There is an overall threshold for disposals above which you must declare (£50k since slashing of the allowance, previously 4 times the exemption). Otherwise you only need to declare if you owe any CGT. You do not need to include the CGT pages in your return if you do not meet either of these conditions. This has not changed.

itwasntme001

Yeh I sold a lot last tax year but my gains were below the allowance and I still have to fill in the CGT pages.  Definately making CGT easier for me this tax year and hopefully the next tax year I will not have to fill any SA out for any longer.

itwasntme001

I used the computation pages by HMRC SA for my capital gains section.  Am I correct that I do not need to provide any further calculations or attachments?

EthicsGradient

itwasntme001 said:

I used the computation pages by HMRC SA for my capital gains section.  Am I correct that I do not need to provide any further calculations or attachments?

If you have checked (either by using the HMRC calculator at https://www.gov.uk/guidance/work-out-your-capital-gains-tax-adjustment-for-the-2024-to-2025-tax-year or with your own calculations) that your gross gains (ie not offset by any losses) realised after the Budget don't exceed the total of the £3,000 annual allowance plus your gross losses for the whole tax year, then you should be able to fill in "0" as the "Adjustment to Capital Gains Tax" figure (if you have losses from previous years to use, I believe you can add them to this year's gross losses for this calculation, but since that doesn't apply to me, I haven't considered that before).

If you haven't thought about whether some of your gains were before or after the Budget, then you do need to do the thinking and calculation - the SA pages do not make you think about it, they just provide the "Adjustment to Capital Gains Tax" box, and tell you to fill it in with the appropriate figure.

itwasntme001

EthicsGradient said:

itwasntme001 said:

I used the computation pages by HMRC SA for my capital gains section.  Am I correct that I do not need to provide any further calculations or attachments?

If you have checked (either by using the HMRC calculator at https://www.gov.uk/guidance/work-out-your-capital-gains-tax-adjustment-for-the-2024-to-2025-tax-year or with your own calculations) that your gross gains (ie not offset by any losses) realised after the Budget don't exceed the total of the £3,000 annual allowance plus your gross losses for the whole tax year, then you should be able to fill in "0" as the "Adjustment to Capital Gains Tax" figure (if you have losses from previous years to use, I believe you can add them to this year's gross losses for this calculation, but since that doesn't apply to me, I haven't considered that before).

If you haven't thought about whether some of your gains were before or after the Budget, then you do need to do the thinking and calculation - the SA pages do not make you think about it, they just provide the "Adjustment to Capital Gains Tax" box, and tell you to fill it in with the appropriate figure.

Yes I did use that calculator and it comes out with 0.  My gains post budget comes out to be less than £3k.  But why is it the £3k annual plus gross losses for whole year that the gains need to be compared with?  Why the gross losses and is it 3k adding the abs(loss) or 3k reduced by the loss?

Having confirmed the adjustment is 0 and completed the SA computation sheets for CGT, presumably there is nothing I need to provide in terms of attachments of my own calculations?

masonic

itwasntme001 said:

Having confirmed the adjustment is 0 and completed the SA computation sheets for CGT, presumably there is nothing I need to provide in terms of attachments of my own calculations?

The computation sheets should suffice for simple situations like a simple purchase and sale. In that case there would be nothing further to add. For more complex situations where there are multiple purchases and sales of the same asset and/or 30 day rule matching, details of which are material to the calculation, then you'd provide your computations in a different format. I've always taken the view that I wouldn't use their sheets to do the sums in the first place, so reproducing my calculations on their sheets is unnecessary duplication.

GeoffTF

DRS1 said:

But if I only get down to the allowance by using losses from a previous tax year then I need to use the calculator and put in an adjustment?  Oh dear.

No, there will be no adjustment.

EthicsGradient

itwasntme001 said:

EthicsGradient said:

itwasntme001 said:

I used the computation pages by HMRC SA for my capital gains section.  Am I correct that I do not need to provide any further calculations or attachments?

If you have checked (either by using the HMRC calculator at https://www.gov.uk/guidance/work-out-your-capital-gains-tax-adjustment-for-the-2024-to-2025-tax-year or with your own calculations) that your gross gains (ie not offset by any losses) realised after the Budget don't exceed the total of the £3,000 annual allowance plus your gross losses for the whole tax year, then you should be able to fill in "0" as the "Adjustment to Capital Gains Tax" figure (if you have losses from previous years to use, I believe you can add them to this year's gross losses for this calculation, but since that doesn't apply to me, I haven't considered that before).

If you haven't thought about whether some of your gains were before or after the Budget, then you do need to do the thinking and calculation - the SA pages do not make you think about it, they just provide the "Adjustment to Capital Gains Tax" box, and tell you to fill it in with the appropriate figure.

Yes I did use that calculator and it comes out with 0.  My gains post budget comes out to be less than £3k.  But why is it the £3k annual plus gross losses for whole year that the gains need to be compared with?  Why the gross losses and is it 3k adding the abs(loss) or 3k reduced by the loss?

Having confirmed the adjustment is 0 and completed the SA computation sheets for CGT, presumably there is nothing I need to provide in terms of attachments of my own calculations?

The principle is that you can apply the £3k annual allowance, and any losses, in the most advantageous way for you. Pre-budget gains are, for a basic rate taxpayer, potentially subject to 10%, and post-budget to 18%, so it's the latter you want to apply allowance and losses to - and if the gains exceed allowance+losses, then you'll have to pay 8% on the excess, that you fill in in the adjustment box.

As masonic says, you don't have to give the calculation that the calculator does - just the result - 0 for you, and also for me (though in my case, I needed losses during the year to fully offset my post-budget gains). The computation sheets include the date of each gain, anyway, so they can work it out themselves if they want to.

DRS1

GeoffTF said:

DRS1 said:

But if I only get down to the allowance by using losses from a previous tax year then I need to use the calculator and put in an adjustment?  Oh dear.

No, there will be no adjustment.

Thanks.  I may just go through the calculator for the fun of it!