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capital gain tax
Posted: 12 February 2017 13:31:46(UTC)

Joined: 25/04/2016(UTC)
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I am investing thro platform mostly in unit trusts [ appox 15 unit trusts] for long time.During this time, I have only switched funds and never taken profit. Portfolio is now showing profit above £25000, Please let know about CGT. Can I claim CGT also for 15/16 tax year. Thank You.
Redundant (Old Timer?)
Posted: 12 February 2017 20:02:36(UTC)

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Masud -

I assume you have invested via a share account rather than through an ISA. (If you have used an ISA then CGT does not apply).

Working on my assumption, every time you switched funds you will have made a profit or loss on the fund sold out off - it is that profit/loss on e each switch which is subject to CGT and in the tax year in which the switch occurred. The cost of the fund you switched into will be your CGT base cost, plus any reinvestment costs, when you switch out of that new fund.

Thus CGT in a tax year is - Proceeds on switch minus (initial cost of fund + any reinvestment of income costs) = X. From X you deduct your personal CGT allowance for the tax year and if the answer is negative no CGT should be payable.

I suggest you go back through all your contract notes and work out your profits for each tax year and than go to HMRC's website to find out what your personal CGT allowance is in each tax year you have made a profit in to establish if you have any CGT to pay. I would add that the website will explain the calculation probably far better than I have, and it will explain part disposals for you..
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masud on 13/02/2017(UTC)
Alan Selwood
Posted: 13 February 2017 00:11:04(UTC)

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If you have switched funds in previous tax years, any profit you made on the switch (net proceeds in the year of sale less the total purchase costs, but with any reinvested dividends, including the 'hidden' ones in accumulation units, being added to the cost figure) will have been liable to CGT in that year if your total gains in that year from sales exceeded your exempt allowance.

You should have reported such gains each year to HMRC if the gains and the proceeds of sale exceeded the limits they tell you in the tax return notes. Otherwise you did not need to.

Any losses you incurred in those earlier years may have offset gains made in the same year, and if you made more losses than gains, you should have declared them, so that they could be recorded officially for use in setting those losses against gains in subsequent years, thus saving you paying some CGT in later very profitable years.

You cannot use last year's CGT allowance against sales AFTER 5th April 2016. Use it or lose it!

In the current year, which runs from 6th April 2016 to 5th April 2017, any sales during that period may create a CGT liability. As mentioned already, you should calculate, for each item sold, the total cost of purchase + reinvested income. Deduct that total figure from the net proceeds of sale. This gives you the gain on that sale.

When you have listed all the figures for those assets sold, tot those gains up.

If the total is below the chargeable threshold (£11,100), you have nothing to pay. If it is over that figure, the extra is taxable at rates depending on your overall tax situation.

for details

Where possible, try to replace non-ISA holding by ISA holdings, since you then do not need to keep CGT records on the ISA holdings, and don't have to pay CGT on gains made within the ISA.

The above does not attempt to spell out every variation on the CGT theme, and you should read up on CGT before jumping to any conclusions about your own personal liability.
Try this official website for starters:

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masud on 13/02/2017(UTC)
S Dobbo
Posted: 13 February 2017 18:16:05(UTC)

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As well as the above, even if you don't exceed your CGT limit you may still have to declare if you have sold funds greater than £44,400 as I read it:-

'Even if your gains are below the tax-free allowance, tell HM Revenue and Customs (HMRC) if:

you disposed of chargeable assets with an overall worth of more than 4 times the Capital Gains Tax allowance - this works out as £44,400 for the 2016 to 2017 tax year'

I try to trade below the tax limit outside my ISA but still fill in tax form on line to keep everything tidy.

I use this online calculator that might help, it does take a bit of formatting to get it to work.
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masud on 13/02/2017(UTC)
Posted: 05 December 2017 11:14:37(UTC)

Joined: 05/12/2017(UTC)
Posts: 1

You only have to pay Capital Gains Tax on your overall gains above your tax-free allowance (called the Annual Exempt Amount).

The tax-free allowance is:

£5,650 for trusts
You can see tax-free allowances for previous years.

You may also want to check out this link too: Tax calculator

Hope you've managed to get the answer to your question, glad to be part of a forum full of such useful knowledge and people...
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