Selling shares
Discussion
As Swermi says, you will need to complete a Self Assessment tax return in order to notify HMRC of the gain you have made and to declare the additional Capital Gains Tax liability you will have made on the sale.
If the sale happens before 5 April 2015, this means that you will need to submit a 2014/15 Self Assessment tax return. If that is the case, you should be contacting HMRC about now notifying them that you will want to submit a 2014/15 tax return. They will issue you with a Unique Taxpayer's Reference (UTR) which is sometimes called the Self Assessment Tax Reference and, not long after 6 April 2015, they will send you a letter called a "Notification to Submit a 2014/15 Tax Return".
They will NOT issue you with an actual paper tax return UNLESS you specifically ask them for one. The default assumption is that you will submit the tax return on-line.
If submitting on-line, as well as the UTR you will also need various passwords and authentication codes to allow you to access the HMRC Self Assessment on-line tax return system.
If you use an accountant, you won't need to o this as the accountant will have all these on-line permits already.
The deadlines for submitting a 2014/15 tax return are 31 October 2015 for a paper return and 31 January 2016 for an on-line return. Any tax due will need to paid by 31 January 2016.
If the gain happens after 5 April 2015, this moves the gain into the 2015/16 tax year and the relevant deadline dates etc are shifted forward by one year.
If the sale happens before 5 April 2015, this means that you will need to submit a 2014/15 Self Assessment tax return. If that is the case, you should be contacting HMRC about now notifying them that you will want to submit a 2014/15 tax return. They will issue you with a Unique Taxpayer's Reference (UTR) which is sometimes called the Self Assessment Tax Reference and, not long after 6 April 2015, they will send you a letter called a "Notification to Submit a 2014/15 Tax Return".
They will NOT issue you with an actual paper tax return UNLESS you specifically ask them for one. The default assumption is that you will submit the tax return on-line.
If submitting on-line, as well as the UTR you will also need various passwords and authentication codes to allow you to access the HMRC Self Assessment on-line tax return system.
If you use an accountant, you won't need to o this as the accountant will have all these on-line permits already.
The deadlines for submitting a 2014/15 tax return are 31 October 2015 for a paper return and 31 January 2016 for an on-line return. Any tax due will need to paid by 31 January 2016.
If the gain happens after 5 April 2015, this moves the gain into the 2015/16 tax year and the relevant deadline dates etc are shifted forward by one year.
gcollins said:
Have been thinking that. What's my allowance, about 15k?
From the uk gov web site said:
3. Capital Gains Tax allowances
You only have to pay Capital Gains Tax on your overall gains above your tax-free allowance (called the Annual Exempt Amount).
Period Tax-free allowance
5 April 2013 to 6 April 2014 £10,900
5 April 2014 to 6 April 2015 £11,000
You may also be able to reduce your tax bill by deducting losses or claiming reliefs - this depends on the asset.
You only have to pay Capital Gains Tax on your overall gains above your tax-free allowance (called the Annual Exempt Amount).
Period Tax-free allowance
5 April 2013 to 6 April 2014 £10,900
5 April 2014 to 6 April 2015 £11,000
You may also be able to reduce your tax bill by deducting losses or claiming reliefs - this depends on the asset.
If you have reinvested dividends over the period in question, basic rate tax will have been paid on those divs.
When these "tax paid" divs are reinvested will increase your cost basis thus reducing cap gain liability.
However if you are a higher rate payer, as I suspect, probably better to just split into two years take any credit for tax paid on divs then let it go without a cost basis adj.(because you would owe on the divs as a high rate payer)
Not an accountant and, no longer in UK so this may be crap
When these "tax paid" divs are reinvested will increase your cost basis thus reducing cap gain liability.
However if you are a higher rate payer, as I suspect, probably better to just split into two years take any credit for tax paid on divs then let it go without a cost basis adj.(because you would owe on the divs as a high rate payer)
Not an accountant and, no longer in UK so this may be crap
If he makes a genuine set of absolutely separate sales - then there is no problem.
What HMRC are on the lookout for is a single sale disguised as separate sales.
For example,. selling to a single customer over a period of days straddling the tax year end would immediately alert them to the fact that something might be up.
What HMRC are on the lookout for is a single sale disguised as separate sales.
For example,. selling to a single customer over a period of days straddling the tax year end would immediately alert them to the fact that something might be up.
Eric Mc said:
If he makes a genuine set of absolutely separate sales - then there is no problem.
What HMRC are on the lookout for is a single sale disguised as separate sales.
For example,. selling to a single customer over a period of days straddling the tax year end would immediately alert them to the fact that something might be up.
So when i deposit the money into my account do i have to inform HMRC or do i just go ahead with the tax return as discussed.What HMRC are on the lookout for is a single sale disguised as separate sales.
For example,. selling to a single customer over a period of days straddling the tax year end would immediately alert them to the fact that something might be up.
If I have understood correctly the issue of filling in a tax return to deal with CGT only arises if,
By the way, if the OP is married he could transfer half of the shares to his spouse (completely tax free) and then each of them has these allowances. In other words, double the allowances.
- Proceeds of sale exceed £44,000
- Gains exceed 11,000
By the way, if the OP is married he could transfer half of the shares to his spouse (completely tax free) and then each of them has these allowances. In other words, double the allowances.
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