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Well...you live and learn - Capital Gains wrinkle
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MarkSp
Posted: 13 January 2023 00:35:01(UTC)
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From the IC tomorrow

"What you might not be aware of, says Stefanie Tremain, partner at Blick Rothenberg, is that you might need to declare your investment proceeds in your tax returns – even if the gains are not in excess of the CGT allowance. This applies if the total proceeds from all disposals in the year are at least four times the allowance itself. For example, if you sell £50,000-worth of investments you will need to declare it, even if your gains amount to less than £12,300."

I didn't know that !!
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Richard G on 14/01/2023(UTC)
Dexi
Posted: 13 January 2023 02:48:07(UTC)
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This has been mentioned before in discussions on CGT . Also , IIRC the limit for declaring is still at the c. £ 50 k level , even though the tax free limits are dropping substantially .
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Andrew1952
Posted: 13 January 2023 19:49:01(UTC)
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Joined: 06/07/2019(UTC)
Posts: 538
MarkSp;253605 wrote:

From the IC tomorrow

"What you might not be aware of, says Stefanie Tremain, partner at Blick Rothenberg, is that you might need to declare your investment proceeds in your tax returns – even if the gains are not in excess of the CGT allowance. This applies if the total proceeds from all disposals in the year are at least four times the allowance itself. For example, if you sell £50,000-worth of investments you will need to declare it, even if your gains amount to less than £12,300."

I didn't know that !!


Indeed. My accountant mentioned that to me about 12 years ago after I sold
just over £22,000 worth of something but only made a gain of about £1,000

Andrew
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Tim D
Posted: 13 January 2023 20:49:10(UTC)
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I believe that with the cuts to the CGT tax-free threshold over the next couple of years to £6000 then £3000, the long-standing x4 factor to declare transactions even if gains are below the taxable threshold is being replaced with a straight £50,000 number.

That was the impression I got anyway; someone tell me if I'm wrong.
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Dexi on 14/01/2023(UTC)
Nigel G
Posted: 13 January 2023 21:32:28(UTC)
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Tim D;253729 wrote:
I believe that with the cuts to the CGT tax-free threshold over the next couple of years to £6000 then £3000, the long-standing x4 factor to declare transactions even if gains are below the taxable threshold is being replaced with a straight £50,000 number.

That was the impression I got anyway; someone tell me if I'm wrong.

You're not wrong.


"For the tax year 2023 to 2024 the AEA will be £6,000 for individuals and personal representatives, and £3,000 for most trustees.
For the tax year 2024 to 2025 and subsequent tax years the AEA will be permanently fixed at £3,000 for individuals and personal representatives, and £1,500 for most trustees.

The measure also fixes the CGT proceeds reporting limit at £50,000."

https://www.gov.uk/gover...tax-annual-exempt-amount
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Tim D on 13/01/2023(UTC), Dexi on 14/01/2023(UTC), Andy JR on 14/01/2023(UTC)
Rookie Investor
Posted: 13 January 2023 21:43:43(UTC)
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Joined: 09/12/2020(UTC)
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What do they mean by "fixes"? It could mean either keeping the reporting threshold as static at £50k? Or it could mean they will "fix" it by making it more general rule of a reporting threshold as 4 x CGT allowance?

I suspect the former?
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Stephen B.
Posted: 13 January 2023 21:55:37(UTC)
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It seems fairly clear that they mean that the limit stays at £50k regardless of the exempt allowance - they don't want a huge increase in people reporting sales of relatively small amounts.
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Tim D on 13/01/2023(UTC), bill xxxx on 14/01/2023(UTC)
MarkSp
Posted: 14 January 2023 05:37:03(UTC)
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So what is the value of a £25 per point CFD on a £1 share? with 10% leverage

£2,5k, or £25k?
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Andy JR
Posted: 14 January 2023 08:49:34(UTC)
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That’s good news re the £50k, I wasn’t aware. I had feared the worst that the 4 times CGT allowance would track down with the new lower thresholds.
The current threshold really ties my hands in my GIA, I have not traded at all in it for months, just to keep within the threshold.
That said, the left alone account appears to perform better than the ISA I tinker with.
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Tim D
Posted: 15 January 2023 23:01:29(UTC)
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MarkSp;253744 wrote:
So what is the value of a £25 per point CFD on a £1 share? with 10% leverage

£2,5k, or £25k?


For CGT purposes, it simply depends how much of a gain you make on it. Some abstract "value" while you're holding the CFD doesn't matter.. .the gain is the difference between what you paid and what you ultimately got for it when you got it.

On one site - https://www.asktraders.c...de/cfd-trading/cfd-tax/ - I see "Those with concerns about CGT might want to consider the option of spread betting tax-free."
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