Capital Gains

Morning All,

Just after some advice.

Do i have to report capital gains when i sell shares for under £1-£10.

Also would i have report it if i didnt withdraw the money from my standard freetrade account and reinvested it?

Apologies for the amateur questions (Newbie here).

Thank you.

Value of share or value of total sale are somewhat irrelevant

You are simply liable for any gains over and above you annual CGT limit.

So if you’re within that limit (currently about £12k per year) you do not report if you’re PAYE. If youre self assessment you tend to report all.

If you’re over that limit you’re liable.

When you enter your total annual sales into your tax return your liability will be worked out for you.

Yes, you’re liable even if you don’t withdraw. Your liability is generated by the transaction itself not what you did with the proceeds afterwards

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Some useful info here: The totally NOT complicated investment tax post

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Brilliant, so much easier to understand that, thank you.

Hate trawling through the HMRC website it’s like a minefield of links etc.

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Alternatively use an ISA.

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Agreed absolute nightmare especially for a non-UK resident. Do you want the stamp duty or not? :joy:

They make it so difficult

Capital gain tax is really simple in the UK though, even for non-UK residents. At least compared to the US…

Stamp duty is a nightmare though. Wouldn’t know on CGT never paid any in the UK

It is to understand the basics but they don’t explain it well when it comes to high earners and other outside sources.

Exactly, you never paid CGT because it is straightforward. You only have to report it if you go over the allowance, and if/when you do all you have to do is take the total amount from your statements a put it in a box or form and it calculates for you, 10% or 20% flat rate depending on your income.
However, that is assuming you don’t have an ISA which you should by the time you are earning over £12k a year.

Stamp duty is paid when you buy a stock and the broker shows you what you are paying when you place your order. FT shows it in the confirmation window.

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