How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask TonyTax Your Own Question

TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15838
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

Are gains within a managed wrap investment needing reporting

Resolved Question:

Are capital gains within a managed wrap investment needing reporting in my annual tax return each year ? The company has sent a capital tax gain schedule for the year but I thought gains were only due when the investment was taken out at the end ?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.

Hi.

I assume you mean "capital gains tax schedule" and not "corporation tax gain schedule". If you have received a CGT report, you may need to act on it. See further on in this answer.

If your investment is one with life cover attached and you are able to withdraw up to 5% of the original investment in each policy year, you need do nothing even if gains have been made on the underlying investments. If you withdrew more than 5% in one policy year you may be issued with a chargeable event certificate for that policy year depending on your previous withdrawal history. Such an event may have income tax implications for you which you can read about here.

The wrapper is just a convenient way for an investment company to manage a portfolio and illustrate performance to the investor. Take a look at the AXA example here. Whilst it is not meant for retail customer viewing, it shows that gains still need to be reported to the investor even if they are within the CGT exemption as the investor may have made other taxable gains of which the wrapper company is not aware.

Take a look under the heading "If you normally complete a Self Assessment tax return" here. Gains need to reported if they exceed the annual CGT exemption of £10,900 for 2013/14 or if the total proceeds of all disposals exceed £43,600 for 2013/14 regardless of the level of the gains or losses.

If you look under the heading "If you don't normally complete a tax return" on the same web page, you will see that if you have no CGT to pay (because your total gains are less than the annual exemption of £10,900 for 2013/14) you don't need to report them to the tax office. If you do have CGT to pay, then you need to report the gains to the tax office.

I hope this helps but let me know if you have any further questions.

TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15838
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Many thanks - yes had edited to "Capital gain" and not "corporation gain" and your answers covers what I wanted to know, namely have to add the wrap gain to other gains and then tax may be payable even if that wasn't the intent during the year.

thank you

John

Expert:  TonyTax replied 2 years ago.
Thanks.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.