If you sell an item which is exempt from CGT (like a watch) you don’t need to include it on the Return, the same goes for a house which has always been your main residence and is covered in full by Principle Private Residence relief (PPR) or shares sold within an ISA wrapper and suchlike.
If you’ve sold something whose proceeds are both beneath the reporting threshold (currently £50k) and the gains are covered by the annual exempt amount (currently £3k) then you don’t need to include it on the Tax Return.
Anything else should be reported. Therefore:
- If your sales proceeds are more than £50k (even if there is no tax to pay) you should report it on the Tax Return.
- If you have a gain that exceeds the £3k limit (in any circumstance) you should report it on the tax return.
- If you have sold a UK residential property and have already done a 60-day CGT Return, you should still include it on the Tax Return.
- If you’ve made an allowable loss, you should still include it on the Tax Return so that you can use that loss in future.
If you have any questions or would like to discuss Tax planning, get in touch with our team of experts on 01424 730345 or email bexhill@honeybarrett.co.uk and they will be happy to help.
