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Sam, Accountant
Category: Tax
Satisfied Customers: 14154
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I had a Ftse linked shares investment which matured in Sept

Customer Question

I had a Ftse linked shares investment which matured in Sept 2012. It made approx £5600 in profit I was advised by the bank that it was not subject to Capital gains tax Please advise if this is correct
Submitted: 4 years ago.
Category: Tax
Expert:  Sam replied 4 years ago.



Thanks for your question

There are so many different investment schemes- some subject to just income tax and others capital gains,

If your bank is telling you that this particular investment is not liable to capital gains tax, then there is just the income tax position to consider.


Basic rate tax would already have been deducted prior to the paying out of the investment and along with this you should have been paid an interest certificate (tax deduction certificate) detailing the gross payment and tax suffered.


You need take no further action unless this amount along with your normal annual income is more than £42475 a year, in which case there will there further tax to consider.


If this applies to you, and you do not already complete a self assessment or short tax return, then get in touch with HMRC, so they can arrange to issue you with appropriate annual returns after 05/04/2014.





Customer: replied 4 years ago.


Many thanks for your help

I had some problems with my computer trying to crash so I was a little tardy in my reply here Sorry I have never received a tax cert with tax deducted as such but was told twice that my gain was under £8000 and not subject to any other tax I am nowhere near the income that you indicate and I am on pension income

Expert:  Sam replied 4 years ago.



Thanks for your response


Then it was an investment that would have been subject to capital gains but as the return was less than £10,600 it is exempt as under the annual threshold, and as long as you have no other capital gains arising between now and 05/04/2014, then you have no further liability to consider.


If you have any further concerns ask the bank to issue you with written confirmation of which tax regime it would have been subjected to, so you can satisfy yourself that it is indeed free of any further liability.

The fact you have not been issued with a tax deduction certificate further clarifies this but instead you should have been issued with a chargeable event certificate, detailing the total gain position (which would also show a NIL tax due)


Your information provided with the payment (letter detailing the payment due) will clarify this position.