What are disposal proceeds

[Sparkysea]

Hi all
I am completing my SA and I just would like to check what "disposal proceeds" are in CGT section please.
I made a capital loss of £592 when I bought shares for £5665.55 and sold them for £5227.25. As I made a loss I am assuming the disposal proceeds are nil...
Thanks for your assistance
Sparky

[Magic919]

It is £5227.25.

[Eric Mc]

If that is the only Capital Gains transaction in the year 2015/16, it is below the reporting threshold.

"Disposal Proceeds" equates to "Selling Price".

In most cases the term means the "sales proceeds" but they use the term "disposal proceeds" because Capital Gains Tax can be charged on some transactions where no specific "sale" took place.

[Sparkysea]

It's actually for the year 2013/2014 (I will give explanation in return) - I didn't make any capital gains that year only the loss as I sold the shares a couple of months later when they started to tank...
I'm assuming I put disposal proceeds down as £5227.25 and the loss of £592 then?
Thank you

[Eric Mc]

Are you sure you need to return it?

[Sparkysea]

I plan to put entry in 2015/16 SA and explain late entry claim for capital loss

[Eric Mc]

Are you trying to insert a missed loss in order to offset against a capital gain?

[Sparkysea]

Hi Eric
I made no capital gain that year. Just the loss

[Eric Mc]

Why are you bothering to make the submission then?

[Sparkysea]

Its a loss I can deducted from 2015/2016 as can carry over

[Beggarall]

I think the only reason you might want to report this is if you are anticipating making a major capital gain at some point in the future and you would want to offset the gain by this amount. I think you have 4 years to report any losses for this purpose. Otherwise it's a fairly small amount and no point in exposing yourself to HMRC scrutiny unless you have to! I don't think you have to report gains unless they exceed your annual tax-free allowance - but follow Eric's advice - he is an accountant!

[Sparkysea]

Ok maybe I've completely misunderstood... I thought if you make a loss when you sell shares you can offset this against what you owe in tax . So I thought loss declared would be deducted from what I owe in tax for 2015/2016?

[Beggarall]

Sorry - afraid not - Capital losses only count against Capital gains - good try though!

[Sparkysea]

Ok get it.... system wont let me enter it now anyway as HMRC website keeps crashing!

[Eric Mc]

I was wondering what you were trying to achieve.

The only losses you can offset against "Other Income" are losses from a trading activity in the same tax year.

[jeff m2]

Non accountant here
Also non UK resident.
But, I always report a loss and use it or carry it.
The next tax year I would look for a gain that I can match, thus increasing my cost basis going forward. (lessening future gains)
There is no wash rule on taking a gain and re buying. (only a loss wash.)

Of course you guys have a CG allowance, so if you are not close, it's all academic.