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: 15942
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

I purchased a variety of shares thousand pounds and

Customer Question

I purchased a variety of shares for 80 thousand pounds and sold a variety of shares for 90,000 in the same tax year. am I liable to capital gains?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.

Hi.

If your disposal proceeds exceeded four times the annual CGT exemption in the 2013/14 tax year (£46,600) which they appear to have done, you have to report the gains and losses regardless of whether your gains exceeded the annual CGT exemption or not. Take a look here for more information on shares and CGT and here and here for information on share identification on disposal.

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

Expert:  TonyTax replied 2 years ago.
The figure £46,600 in my answer should have read £43,600 (4 x £10,900). Apologies for the typo.
Customer: replied 2 years ago.

so the tax gain /loss is calculated on individual companies rather than an amalgamation of all shares bought and sold in a tax year?

Expert:  TonyTax replied 2 years ago.
You cannot amalgamate shares in different companies for CGT purposes.

If you had no shares in company A at the start of the tax year, you then bought some and sold them all by the end of the tax year, your calculations will be straightforward. The same applies to shares in company B, C, D etc. Overriding all that are the identification rules I gave you a link to.
Customer: replied 2 years ago.

OK thank you. So the assessment is made on each of the different company holdings

Expert:  TonyTax replied 2 years ago.
That's correct.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Tony

Can I ask one more question please without charge?

If company shares have to be assessed individually then is the £10,900 allowance per company?

(don't answer if it costs me I cant afford any more fees sorry)

Expert:  TonyTax replied 2 years ago.
That's fine, its a related question. The £10,900 allowance is per individual per tax year. If you don't use it, you lose it.
Customer: replied 2 years ago.

But if u bought 5 different company shares at say 5k each (£25k outlay)

and sold each for £10k (£50k return) then the liability is presumably on 25000profit less 10900 allowance ie 14100?

or is the 5k profit you made on each company subject to individual £10,900 allowance?

many thanks. I wont trouble you after this

Expert:  TonyTax replied 2 years ago.
The CGT exemption is used agaisnt the total net net gains (gains - losses). You don't get an individual allowance per shareholding. So, if you make total net gains of £25,000, the first £10,900 is exempt and you pay CGT on £14,100.