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Where Taxpayers and Advisers Meet

CGT on sale of assets

gardenman
Posts:6
Joined:Sat Nov 26, 2022 5:33 pm
CGT on sale of assets

Postby gardenman » Wed Feb 07, 2024 8:52 pm

I have held a number of accumulation units with a well known provider for a number of years. When I compare the book cost with current value, there is a gain in excess of £20k. I am aware I have a CGT allowance available to me of £6000 in this tax year. Let's assume I sold the entire holding and realised a gain of £25k. I can offset this with the £6000 and, theoretically, this would leave me with a net gain of £19000. I am self employed and complete my annual self-assessment tax return to HMRC each year. Is it down to me (and my honesty!) to declare this gain when I submit my return? Would the finance house I am with report the CG on this disposal to HMRC?

pawncob
Posts:5083
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: CGT on sale of assets

Postby pawncob » Wed Feb 07, 2024 9:06 pm

Honesty is always the best policy.
With a pinch of salt take what I say, but don't exceed your RDA

gardenman
Posts:6
Joined:Sat Nov 26, 2022 5:33 pm

Re: CGT on sale of assets

Postby gardenman » Thu Feb 08, 2024 9:47 am

Honesty is always the best policy.
Yes, you are right. Equally, if the organisation I am invested with has no formal reporting to HMRC on CGT on disposals made by investors and I elect to not mention it in my self-assessment, how will the Taxman ever know any different?? :?:

pawncob
Posts:5083
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: CGT on sale of assets

Postby pawncob » Thu Feb 08, 2024 10:43 am

HMRC have the right to inspect the company's records.
With a pinch of salt take what I say, but don't exceed your RDA

gardenman
Posts:6
Joined:Sat Nov 26, 2022 5:33 pm

Re: CGT on sale of assets

Postby gardenman » Thu Feb 08, 2024 11:12 am

A 'dawn raid' do you mean? Very unlikely with my small sole trader business turning over less than £10k per year - I think they have far bigger fish to fry!

pawncob
Posts:5083
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: CGT on sale of assets

Postby pawncob » Thu Feb 08, 2024 11:54 am

I was referring to their right to inspect the records of the Unit Trust.
With a pinch of salt take what I say, but don't exceed your RDA

bd6759
Posts:4239
Joined:Sat Feb 01, 2014 3:26 pm

Re: CGT on sale of assets

Postby bd6759 » Thu Feb 08, 2024 9:20 pm

Schedule 23 Finance Act 2011.

Data holders are required to provide information to HMRC. HMRC will be told. You are reliant on them not matching the data to you or not being resourced to follow it up.

gardenman
Posts:6
Joined:Sat Nov 26, 2022 5:33 pm

Re: CGT on sale of assets

Postby gardenman » Fri Feb 09, 2024 10:45 am

Schedule 23 Finance Act 2011.

Data holders are required to provide information to HMRC. HMRC will be told. You are reliant on them not matching the data to you or not being resourced to follow it up.
I beg to disagree as I actually emailed the company I hold these units with and their response included the following statement: 'We provide no formal reporting on CGT to HMRC; you must track the disposals and calculate the realised gains yourself or with the help of a tax adviser. We are not tax advisers and as such, cannot advise you on what must be reported'.

Interesting..

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: CGT on sale of assets

Postby darthblingbling » Fri Feb 09, 2024 7:00 pm

Think that's more in terms of tax purposes, i.e., it's up to you to self assess.

bd6759
Posts:4239
Joined:Sat Feb 01, 2014 3:26 pm

Re: CGT on sale of assets

Postby bd6759 » Sat Feb 10, 2024 11:51 am

To me, their response says that they do not provide a reporting service to help you comply. You have to do it yourself.

HMRC will give require them to report their customers’ gains, in the same way as HMRC requires all financial institutions to report customer income and gains.


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