Capital Gains Tax for shares?

lionfly

Never paid CGT, so need some direct simple guide from you guys, not the complex government sheets.

If I put in 10000 in stocks last year, lost 6000, left 4000.
If I put in another 20000 this year, sold before 01/04/2009 with value 39600 in the stock account (not shares), another 15000 in shares market value on 01/04/2009.

1. Is it useful to claim loss 6000 for last year? does it cut the gains of this year?

2. How much is the gains to calculate CGT for this year?

39600-20000-9600(AEA)=10000 liable?
or: 39600+15000-20000-9600=25000 liable?

or the investment is 20000+ 10000 of last year, then
39600-30000-9600=0 liable?
or: 39600+15000-30000-9600=15000 liable?

or the investment is 20000+4000 because of the loss of last year, then
39600-24000-9600=6000 liable?
or: 39600+15000-24000-9600=21000 liable?

3. If I invest all the 39600 into stocks before 01/04/2009, all the 39600+15000 are shares, am I liable to CGT?

Hope to learn you experience. Thanks.

CLAPTON

a litttle unclear

when you say 'put in 10000 in stock last yaer, lost 6,000 , left 4,000'

do you mean you bought stock at £10,000
and you sold the same stock for £4,000
hence loosing £6,000

or what exactly

loses only occur on actual sales.

lionfly

Yes, I bought stock at £10,000, sold for £4,000 before 01/04/2008. So it is 6000 loss in last financial year. Can I use the last year's loss against this year's gains?

I did not report the loss to Inland Revenue because I didn't consider this issue at that time.

Another question, is it all the gains from trading AIM shares NOT liable to CGT? so I need to keep record of every transaction to count how much gains from AIM, and take the AIM gains out from the total gains, as chargeable gains?

debbie42

lionfly wrote: »

Yes, I bought stock at £10,000, sold for £4,000 before 01/04/2008. So it is 6000 loss in last financial year. Can I use the last year's loss against this year's gains?

I did not report the loss to Inland Revenue because I didn't consider this issue at that time.

Another question, is it all the gains from trading AIM shares NOT liable to CGT? so I need to keep record of every transaction to count how much gains from AIM, and take the AIM gains out from the total gains, as chargeable gains?

You can offset the loss against gains. HMRC only needs informing when you are offsetting it, not when it occurred.

AIM shares are still liable to CGT. The taper relief etc. used to be different but that's changed now.

lionfly

thanks guys.

how about question 2 and 3?

also another question 4 please: if before 01/04/09 the 39600+15000=54600 are put back into shares' value, then what is the invested cost for me to calculate gains for 01/04/10?

is it the original 30000, or the 54600 the share value into the financial year?

debbie42

lionfly wrote: »

2. How much is the gains to calculate CGT for this year?

39600-20000-9600(AEA)=10000 liable?
or: 39600+15000-20000-9600=25000 liable?

or the investment is 20000+ 10000 of last year, then
39600-30000-9600=0 liable?
or: 39600+15000-30000-9600=15000 liable?

or the investment is 20000+4000 because of the loss of last year, then
39600-24000-9600=6000 liable?
or: 39600+15000-24000-9600=21000 liable?

3. If I invest all the 39600 into stocks before 01/04/2009, all the 39600+15000 are shares, am I liable to CGT?

I couldn't follow your numbers, but basically, your CGT liability is simply:

profit from this year - loss from last year

You crystallize the gains (or losses) when you sell, so any new purchases won't count. (There are some rules about buying the same shares soon after selling, but I guess this isn't what you are planning?)