CGT. Self assessment advice if the profit is within the allowance

Sheeken

Hi i'm looking for some advice if possible please. I've recently sold some shares and my profit was around £1350. I know there is an allowance of £3000 for 2025/2026.  Should i submit a self assessment anyway because when the sale money was paid into my bank, the profit and the purchase amount went in together in one lump of about £7000. I am worried that HMRC will see the £7000 and tax me on the full amount. Thank you in advance.

Isthisforreal99

You over-estimate what HMRC can see.

If the disposal proceeds were less than £50,000 and the gain less than £3,000 there is no need to report anything.

masonic

You must still submit your tax return if you are asked to complete one, but you only need to add the CGT pages if under the circumstances @Isthisforreal99 has outlined.

If you have no other reason to complete a tax return, then this is not a reason.

Sheeken

Isthisforreal99 and masonic. Really appreciate your quick response. That's great. Thank you both for your advice

Heedtheadvice

The only time it might be beneficial is to record a loss so that it can be used against future gains?

But someone else might correct me!!

FindingBBob

Can I ask an additional this? If you have say 10k shares, most of which were gifted to you over the years and current value is £6 per share  - do you calculated the capital gains based on the average price per share over the years or the £0 per share as they were gifted, when you sell?  

eskbanker

FindingBBob said:

Can I ask an additional this? If you have say 10k shares, most of which were gifted to you over the years and current value is £6 per share  - do you calculated the capital gains based on the average price per share over the years or the £0 per share as they were gifted, when you sell?  

Potentially neither, but who gifted them to you?  If a spouse, then it's the original acquisition prices that apply, but otherwise the base price would be that when you acquired them.

FindingBBob

eskbanker said:

FindingBBob said:

Can I ask an additional this? If you have say 10k shares, most of which were gifted to you over the years and current value is £6 per share  - do you calculated the capital gains based on the average price per share over the years or the £0 per share as they were gifted, when you sell?  

Potentially neither, but who gifted them to you?  If a spouse, then it's the original acquisition prices that apply, but otherwise the base price would be that when you acquired them.

Thanks, it was a parent over a number of years. The price per share has only gone up (private company) so let's say 20 years ago the price was £3 and now £6 would i need to account for each gift or just an average over the life of ownership. (I will get tax advice but wanted to get a sense of what it could look like) thanks again. 

masonic

FindingBBob said:

eskbanker said:

FindingBBob said:

Can I ask an additional this? If you have say 10k shares, most of which were gifted to you over the years and current value is £6 per share  - do you calculated the capital gains based on the average price per share over the years or the £0 per share as they were gifted, when you sell?  

Potentially neither, but who gifted them to you?  If a spouse, then it's the original acquisition prices that apply, but otherwise the base price would be that when you acquired them.

Thanks, it was a parent over a number of years. The price per share has only gone up (private company) so let's say 20 years ago the price was £3 and now £6 would i need to account for each gift or just an average over the life of ownership. (I will get tax advice but wanted to get a sense of what it could look like) thanks again. 

If all the shares are equivalent, then you would add up the value for each tranche at acquisition and divide by the number of shares to get your base cost. Then this would be used to calculate the gain when you sell.

eskbanker

FindingBBob said:
...would i need to account for each gift or just an average over the life of ownership...

Yes!  They give the same result, as long as you use a correctly weighted average....

FindingBBob

Thanks Masonic and eskbanker.. really helpful.