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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5148
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
Type Your Tax Question Here... is online now

I have a question about capital gains tax. A Few years ago i

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I have a question about capital gains tax. A Few years ago i received a shares option and chose to take the option and cash in the shares. Since them someone told me that if the share value was over a threshold i may be liable for capital gains tax. I dont remember receiving anything from the tax office asking for a payment to be made so am now left wondering how do i find out if i am liable and if so how do i go about paying any due amount?

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.

Thank you for your question..

If you make a cpaitla gain in excess of the gains allowance, then the excess is chargeable to CGT. It is not the value of the share or sales proceeds but the gain made.

The tax office would not communicate with you for payment unless you have completed the relevant section on your tax return to report the chargeable gain.

You need to establish what the gain was when you exercised your shares option.

If the gain is in excess of the gains allowance then you need to report it to the tax office.

I will be able to tell you what the threshold is if you provide me with details of gain and tax year the sale took place.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

I failed to tick the box to confirm the above is my answer.

Customer: replied 1 year ago.
I dont have all details in front of me but think the tax year might have been 2012/13. I think the gain may have in around £10,000 but i was goung through divorce at the time so all finances got in a bit of a muddle. I dont normally fill in a tax return so can i just register to do a self assessment this year and use that as a means of trying to address things or do i need to take some other form of action or get help from a tax advisor to help me with resolving?

Thanks for your reply

Capital gains allowance for tax year 2012-13 was £10,600.

Provided your sale proceeds did not exceed £42,400 and the gain was less than £10,600 you don't have to report the gain to HMRC.

If you need help in the future, you can always come back here and ask for me when you put your question.

I hope this is helpful and answers your question.

If there are no more issues, I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensure I get credited for it by Just Answer.

Many thanks and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
I am still a little confused but think i need to find more details of what happened and maybe come back for a more detailed answer in future. Thanks for you help