Capital gains on Investments

moonman

This is my first post please be gentle,

I have recently made a profit on trading commodities. I have asked for some of the profit to be moved back to my UK Bank account. The remainder of the profit will sit in the accounts of the company I am trading through until I either decide to move it back or reinvest it.

Do I only pay capital gains on the money moved back or on the full amount of profit made, Given that if I reinvest some of the profit they are holding it may make a loss on the next trade?

Can anyone please advise? I have looked at the Capital gains tax allowance and it is £9,200 . so I will have to pay tax on any money above this.

fengirl_2

I assume you mean that a company is managing your investments on your behalf and that it is not your company. I also assume you are resident in the UK for tax purposes.
If this is the case, you pay CGT on the profits made on all dealings. It does not matter whether the money is reinvested or taken as cash.

moonman

fengirl wrote: »

I assume you mean that a company is managing your investments on your behalf and that it is not your company. I also assume you are resident in the UK for tax purposes.
If this is the case, you pay CGT on the profits made on all dealings. It does not matter whether the money is reinvested or taken as cash.

Yes they are managing the investment, and I am a UK Resident. Am I right in thinking that Capital gains is 40% above the current allowance, but as of April 2008 will be based at 18% on anything above the Allowance?

The profits was made within the last couple of days so How do I stand on the tax side if the money was made in the last month, but the tax return will not be submitted until the next financial year.

fengirl_2

If your top rate of income tax is 40% then your gains are taxed at 40% and it will be 18% from 6 April.
You cannot submit a return for the current year until after 5 April and, like all your income, you pay the tax by 31 Jan 09 on income and gains in the year to 5/4/08.