CGT

[Dod101]

I have completed my tax return for the year 2022/23 and am due only a very small amount of tax and am about to transfer a certificated share into an ISA to complete my allowance for the current tax year. I want to avoid having to enter any tax calculation in my self assessment return next year.

This year the rules were/are that you need to complete the CGT Section only if
a ) chargeable assets sold in the year are more than £49,200 and
b) chargeable gains in the year are more than £12,300

For 2023/24, the second figure is reducing to £6,000 I assume, since this is the new tax free allowance, so I suppose the first figure will reduce proportionately to £24,000. Can someone confirm that is the case? I cannot find anything on the HMRC website.

Thanks in advance.

Dod

[monabri]

https://www.gov.uk/government/publicati ... mpt-amount

I 'think' the £49200 is revised to £50000.

[scrumpyjack]

https://www.gov.uk/government/publications/reducing-the-annual-exempt-amount-for-capital-gains-tax/capital-gains-tax-annual-exempt-amount

I 'think' the £49200 is revised to £50000.

There is something rather ridiculous about the way that document refers to the 'customer experience' of us taxpayers paying CGT!
The reality is that we are sheep to be sheared (or geese to be plucked with the minimum of hissing!)

[mc2fool]

https://www.gov.uk/government/publicati ... mpt-amount

I 'think' the £49200 is revised to £50000.

Hmmm...well that's what that policy paper says, but https://www.gov.uk/capital-gains-tax/work-out-need-to-pay still says you have to report if "the total amount you sold the assets for was more than 4 times your allowance".

However, it looks like that's out of date! Chasing through the Autumn Statement 2022 (which is what that policy paper is for) through to its Finance Bill (section 8(7)) through to the s.8C(1)(b) of the Taxes Management Act 1970, which the Finance Bill amends, it does appear that the £50000 is now set in legislation.

Another thing to note is that they've removed the annual CPI uplift for the allowance, so it's £6000 for this year and £3000 for next year and forever after that (or at least until some other finance act changes it, again).

[Lootman]

This year the rules were/are that you need to complete the CGT Section only if
a ) chargeable assets sold in the year are more than £49,200 and
b) chargeable gains in the year are more than £12,300

For 2023/24, the second figure is reducing to £6,000 I assume, since this is the new tax free allowance, so I suppose the first figure will reduce proportionately to £24,000. Can someone confirm that is the case? I cannot find anything on the HMRC website.

I would assume that it will be made clear in good time for submitting your 2023-2024 return.

So for this tax year I am working off the £6,000 annual CGT-free allowamce. And if you have gains in excess of that allowance, which I always do, then the other number is moot anyway.

A bigger worry for me is what a Labour government might decide to do with CGT since only rich people pay CGT, innit? That could even affect part of 2024-2025.

[Dod101]

Thanks all. I want to keep the CGT at a level where I do not have to report it because it is horribly complicated to do the calculation. I will make up any balance from cash if necessary to fill the £20,000 allowance for the ISA.

Dod

[CliffEdge]

I think it's or rather than and.
But please correct me if I'm wrong.

[Charlottesquare]

Thanks all. I want to keep the CGT at a level where I do not have to report it because it is horribly complicated to do the calculation. I will make up any balance from cash if necessary to fill the £20,000 allowance for the ISA.

Dod

Chicken/Egg- if you do not do the "complex" computation how do you know your gain is below £6.000?

[Itsallaguess]

I want to keep the CGT at a level where I do not have to report it because it is horribly complicated to do the calculation. I will make up any balance from cash if necessary to fill the £20,000 allowance for the ISA.

Chicken/Egg- if you do not do the "complex" computation how do you know your gain is below £6,000?

Presumably one answer is for a sale consideration to be fully under any relevant CGT limit in the first place.

So if there's a gain limit of £6,000, and you know you've paid 'something' for the shares that you're selling, and you limit the sale to only realise a returned consideration of £6,000 or under, then you know without having to do any calculations that your actual gain has to be below the limit...

Cheers,

Itsallaguess

[XFool]

Thanks all. I want to keep the CGT at a level where I do not have to report it because it is horribly complicated to do the calculation. I will make up any balance from cash if necessary to fill the £20,000 allowance for the ISA.

Chicken/Egg- if you do not do the "complex" computation how do you know your gain is below £6.000?

You don't.

But neither do you necessarily know how to do the "complex calculation"...

[Charlottesquare]

Chicken/Egg- if you do not do the "complex" computation how do you know your gain is below £6,000?

Presumably one answer is for a sale consideration to be fully under any relevant CGT limit in the first place.

So if there's a gain limit of £6,000, and you know you've paid 'something' for the shares that you're selling, and you limit the sale to only realise a returned consideration of £6,000 or under, then you know without having to do any calculations that your actual gain has to be below the limit...

Cheers,

Itsallaguess

Of course in that instance the sale threshold then becomes irrelevant.

[Dod101]

I first bought HSBC shares 32 years ago, sold various lots of them over the next decade but also took dividends as scrip. Then there was a share split, then I acquired more shares from my wife's estate and later there was a rights issue , so all in all not easy to discover the average 'pool' price. Anyway I have pro tem solved the problem by leaving it all for another day and instead will place some Unilever shares into my ISA. They are an easy calculation. Since acquiring them there has been a consolidation in 2006 but nothing else has happened so it is very simple to do the CGT calculation.

HSBC and Caledonia IT will then be the only shares outside of a SIPP or an ISA and I will just pay the tax on the dividends I think. Anyway that will be for another year.

Dod