I trade in stocks on a small scale, can somebody please explain if/when I will be liable for capital gains tax. Is the tax related to the total amounts sold or just to the profit made from the sales.

Mr Ripley - if you contact the people who wrote the software - they are usually very good at coming back with answers to your queries and telling you how to manage the problem. I think they have a contact us email address. I had a response within an hour for a query ?

Thanks Bhunt - will do

What if the money you use to trade is between 3 friends,but the trading account is set up in one name only. how would we prove this? How far back can you go with your losing trades?

Losing trades you can claim as losses against gains upto 5yrs and 10mths after the end of the tax yr they occurred in.

As for the 3 friends on one trading account, you really should have a business agreement set up to cover this and profits losses should be accounted for on a business basis rather than just splitting any profits gains between the 3 individuals

Thanks Fundamentalist!

Have been having a discussion on CGT liability and I have a query regarding "notification limit". Can anyone clarify what "total sales proceeds" are, in that if they are under 35,200 you do not have to declare anything. Does it mean proceeds after taking account of total gain minus total losses or is it the total value of all your transactions throughout the year? Would appreciate any comments :-)

It is the value of your transactions - add up everything that is sold in the tax year.

Including the amount you put into the investment so if you buy 100 shares at 10 that investment is also included in the transaction value?
Sorry if I'm being dense but I haven't heard of this either..

No, Stockbunny. As far as I'm aware it is just the value of everything you sell, irrespective of your buy price
eg.in one tax year:
you sell a share at 2000, (you originally bought at 1000)
you also sell a share at 500, (you originally bought at 1000)
your total share sale proceeds for that year is 2500 - the price you bought at (or when it was) is irrelevant in calculating the 'total sale proceeds'. That is to the best of my knowledge anyway.

So the original buying price is not disregarded, as when you sell you get back what you originally invested also in the total sale amount. If you are buying and selling something like RIO it wouldn't take long to techncially have total sales on that limit.

If anyone else knows anything please post cos despite Framptons best efforts I'm still confused, but this is not unusual!

ttt - Little woman are you about???

Frampton is correct. Total sale proceeds are exactly that - the total amount of money you got (after any sales commission) from selling the stock. Yes, you are also right in thinking you don't need many transactions to have total sales more than the declarable limit. It is irrelevant what profit you made, if any, which is subject to a separate limit. You are obliged to declare for CGT if you breach either limit in any tax year.

Exotoxin, can you post what the limit is please.

For the current 2006-2007 tax year the total sales limit is 35,200 and the profit limit is 8,800. Last year it was 34,000 & 8,500.

Thanks Frampton and Exotoxin - that is what we feared!

Details on this site. Figure is always 4 times the CGT limit

Low Incomes Tax Reform Group - Tax help - PensionersPersonal belongings where sale proceeds are less than 6000 ... There is no CGT on the sale of your own home provided you have lived there throughout the ...
www.litrg.org.uk/help/pensioners/incomesover/understandingcgt.cfm - 72k -

Stockbunny, I was off line when you posted the second time, do you get it now? If you sell a block of shares for 36,000 pounds you would have to declare it even if you are selling for exactly the same price you bought at ie. you are not making a profit or a loss. It doesn't matter how much you spend on buying shares (that only comes into it for calculating a gain or a loss).

Framption and Exotoxin - many thanks - yes I get it now :>)

Glad to hear that bunny!