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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4799
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Years I have been able to draw 5% from two investments

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For many years I have been able to draw 5% from two investments without personal tax liability "up to a maximum of 100%". I have now had letters from the two companies telling me that in the tax year to 2015 (and for future years) I am liable to pay a "chargeable gain" on my withdrawals. One company has given this as "amount of gain rounded down £1244" and "amount of tax treated as paid.. £249". The other shows "amount of gain £1234.00, and the "Basic rate income tax treated as paid as £246.80". I am a lower rate tax payer with state and company pensions, minor PAYE income, and building society investments. Where and how should I show these "Chargeable Gains" on my tax return?
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Which has the following guidance: 'On your 2014-15 tax return, you must give details if your taxable gains for the year came to more than £11,000 or the total value of the assets you disposed of (other than those which are tax-free) came to more than £44,000. ' Capital gains are normally declared on a Supplementary Form SA108, but in your case the gain is so small it need not be declared at all. Do not forget though to reclaim the Income Tax deducted by the companies. It is not due and must be recovered. SA100 does not provide for this contingency so enter it at Box 19 just before the signature block and advise HMRC of the Income Tax with held and ask for its repayment. Then check when you receive their summary of tax and NI due or repayable and if it is not there then appeal by writing a letter to your tax office asking for the position to be corrected. I do hope I have helped set your mind at rest on this matter.
Customer: replied 2 years ago.

I wondered if it was really worth paying £18.00 to have this answered, and find you might well have got me about £500 back because I doubt HMRC would automatically have paid it. Superb!

Just a minor point - I've been sent a Short Tax Return to complete which doesn't have a facility to make the statement you refer to - presumably I should just go online and print off the longer tax return I think I'll find on there?

Thanks again.

Yes, you can get the SA100 [Long] from the web. That is probably the quickest way round this problem rather than asking your tax office for the long version of the form.
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