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Where Taxpayers and Advisers Meet

tax on listed company shares

JoeP
Posts:27
Joined:Sun Aug 04, 2013 4:07 pm
tax on listed company shares

Postby JoeP » Tue Jan 11, 2022 5:57 pm

Hello

I'll appreciate if someone can give advise here.

If you have profit from listed company shares by way of trading them in tax year 01/04 to 31/03.

You had £30k in broker account and during tax year with this £30k amount multiply times you bought and sold stocks worth of £1,500,000 (£30k x 50 times) and made profit bellow annual capital gains £12,300.00 for 2021/22. No other assets have been disposed during tax year apart profit for listed company shares in question. Do you have to report this activity into self assessment ?


Many thanks
Joe

bd6759
Posts:3744
Joined:Sat Feb 01, 2014 3:26 pm

Re: tax on listed company shares

Postby bd6759 » Wed Jan 12, 2022 12:58 am

Yes

JoeP
Posts:27
Joined:Sun Aug 04, 2013 4:07 pm

Re: tax on listed company shares

Postby JoeP » Wed Jan 12, 2022 12:59 pm

Yes

Thanks for clarifying.

Another question to this. If you sell bellow £49,200.00, do you still have to report on self assessment ? Reading on CGT summery notes, it states you don't have to report it if you dispose assets which are equal to personal allowance x 4 (£12300 x 4) and bellow annual allowance £12300

robbob
Posts:3207
Joined:Wed Aug 06, 2008 4:01 pm

Re: tax on listed company shares

Postby robbob » Wed Jan 12, 2022 1:38 pm

Hello JoeP
Do you have to report this activity into self assessment ?
Can you advise if a self assessment form is mandatory for reasons other than CGT, last time i checked there was no need to complete a tax return if your gains are below the exempt amount whatever the disposal totals were . If you dpon't need to complete a tax return then you don't have the headache of being asked the £49,200 question (which is part of the tax return ) so potentially there would be no need to report (unless you want to book losses). In summary question only relevant if its known you need to do sa return for other reasons.
If you sell bellow £49,200.00, do you still have to report on self assessment ? Reading on CGT summery notes, it states you don't have to report it if you dispose assets which are equal to personal allowance x 4 (£12300 x 4) and bellow annual allowance £12300
Thats is correct no reporting needed in that scenario.

JoeP
Posts:27
Joined:Sun Aug 04, 2013 4:07 pm

Re: tax on listed company shares

Postby JoeP » Wed Jan 12, 2022 5:20 pm

Can you advise if a self assessment form is mandatory for reasons other than CGT
1) Yes it is mandatory for self employed income for wife.
2) No need for husband as he is employed.
Both have invested in listed shares through UK broker. So 1-Yes and 2)-No

last time i checked there was no need to complete a tax return if your gains are below the exempt amount whatever the disposal totals were . If you dpon't need to complete a tax return then you don't have the headache of being asked the £49,200 question (which is part of the tax return ) so potentially there would be no need to report (unless you want to book losses). In summary question only relevant if its known you need to do sa return for other reasons.
If you sell bellow £49,200.00, do you still have to report on self assessment ? Reading on CGT summery notes, it states you don't have to report it if you dispose assets which are equal to personal allowance x 4 (£12300 x 4) and bellow annual allowance £12300
Thats is correct no reporting needed in that scenario.
[/quote]

JoeP
Posts:27
Joined:Sun Aug 04, 2013 4:07 pm

Re: tax on listed company shares

Postby JoeP » Wed Jan 12, 2022 6:10 pm

Hello Robob,

Thanks for replaying. Please ignore my previous replay as was send accidental uncompleted. Please see my answers bellow.
Can you advise if a self assessment form is mandatory for reasons other than CGT
1) Yes it is mandatory for self employment income for wife.
2) No need for husband as he is employee.
Both have invested in separate accounts on listed shares through UK broker. So 1)-Yes and 2)-No

Last time i checked there was no need to complete a tax return if your gains are below the exempt amount whatever the disposal totals were.
Total gains for CGT purposes are bellow capital gain annual allowance which is £12300 (20/21). So as you are stating, there is NO needed to complete self assessment from my understanding ?

If you don't need to complete a tax return then you don't have the headache of being asked the £49,200 question (which is part of the tax return ) so potentially there would be no need to report (unless you want to book losses).
As I stated above, Wife needed to complete SA due to self employment income, Husband no needed due being employee. There are no loses to be reported.

In summary question only relevant if its known you need to do sa return for other reasons.
Sorry I don't understand this, if you have to do SA for other profits, why you have to report on CGT page when you are not required to do so if you are exempt because you are bellow annual capital gain allowance and you don't have to do SA only for CGT ?

robbob
Posts:3207
Joined:Wed Aug 06, 2008 4:01 pm

Re: tax on listed company shares

Postby robbob » Wed Jan 12, 2022 7:11 pm

Total gains for CGT purposes are bellow capital gain annual allowance which is £12300 (20/21). So as you are stating, there is NO needed to complete self assessment from my understanding ?
If the person is not within self assment and gains are below capital gains exempt amount no need to register for sa and no declaration needed when not already within sa (for otehr reasons)
If person is obliged to do sa return for other reasons then declarations will be needed If proceeds exceed 49k threshold as id direct question on tax return that cant really be ignored.

Sorry I don't understand this, if you have to do SA for other profits, why you have to report on CGT page when you are not required to do so if you are exempt because you are bellow annual capital gain allowance and you don't have to do SA only for CGT ?
Its just hmrc being hmrc - if you are completing a tax return you are being directly asked whether you had gains exceeding 49k - you dont really want to lie to them so you really are forced to complete the pages. Preusmably its to keep tabs on peeps.

If you are not within sa you arent directly being asked that question - so you dont have that problem - note hmrc have a tool checker to see if you need tax returns and there is no mention of the 49k limit there.

JoeP
Posts:27
Joined:Sun Aug 04, 2013 4:07 pm

Re: tax on listed company shares

Postby JoeP » Wed Jan 12, 2022 7:49 pm

Total gains for CGT purposes are bellow capital gain annual allowance which is £12300 (20/21). So as you are stating, there is NO needed to complete self assessment from my understanding ?
If the person is not within self assment and gains are below capital gains exempt amount no need to register for sa and no declaration needed when not already within sa (for otehr reasons)
If person is obliged to do sa return for other reasons then declarations will be needed If proceeds exceed 49k threshold as id direct question on tax return that cant really be ignored.

Sorry I don't understand this, if you have to do SA for other profits, why you have to report on CGT page when you are not required to do so if you are exempt because you are bellow annual capital gain allowance and you don't have to do SA only for CGT ?
Its just hmrc being hmrc - if you are completing a tax return you are being directly asked whether you had gains exceeding 49k - you dont really want to lie to them so you really are forced to complete the pages. Preusmably its to keep tabs on peeps.

If you are not within sa you arent directly being asked that question - so you dont have that problem - note hmrc have a tool checker to see if you need tax returns and there is no mention of the 49k limit there.


Robbob thanks so much for your help !


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