Capital Gains Tax - how to pay when a PAYE tax payer?

[SnoopZ]

I'm a PAYE tax payer so taxed at source and don't fill in a self assessment.

Late next year I will likely have to pay CG as I will have a works sharesave maturing which will take me over the £6000 CGs limit and I will likely sell all of the shares seeing the CG limit will again reduce to only £3000 the following years!

I'm hoping there is a way to pay this tax without having to go through the hassle of filling in a full self assessment, does anyone know if this is possible?

No, AFAIK you need to request self assessment.

[joglynne]

I agree with Chris, the details of what you need to do are shown in the following link which also contains the phone numer if you want to double check.

https://www.gov.uk/government/organi...-self-employed

[SnoopZ]

I've just read this so this looks like what I will need but it's 12 months off so I won't worry about it until then.

How to pay capital gains tax
If you currently complete a tax return, then CGT can be reported through this. Otherwise, you can use the UK government’s real-time capital gains tax service to pay what you owe immediately. Find out the deadlines for these two ways of paying capital gains tax in the next section

[mrmistoffelees]

Highly recommend TaxScouts for performing your self assessment return, I’ve used them for the past four years, similar position to you PAYE but have held options, RSU’s & sold shares

https://taxscouts.com/

[Pierre]

When did that drop? I thought the limit was £10,000.

**** me they love squeezing the little guy.

[SnoopZ]

Originally Posted by Pierre

When did that drop? I thought the limit was £10,000.

**** me they love squeezing the little guy.

It's currently £12300 but in the last budget it's been reduced to £6000 for 2023-2024 then £3000 on going.

https://www.gov.uk/government/public...ital-gains-tax

There is something called the "CGT reporting proceeds limit", which will be fixed at £50,000.

I cannot find any (understandable) definition of what this is, but the name seems to imply you dont have to report anything under £50,000 ?

[Pierre]

Originally Posted by Paul

There is something called the "CGT reporting proceeds limit", which will be fixed at £50,000.

I cannot find any (understandable) definition of what this is, but the name seems to imply you dont have to report anything under £50,000 ?

Thanks Paul, I’ll look into that. I won’t ever get near that though. I do dabble in shares, but if you’ve wanted any kind of return on your savings in the last 14yrs, you weren’t getting it from a savings account.

[SnoopZ]

Yes I can't really make sense of this reporting limit too.

It's left me confused as to whether I need to report a CGT amount of over £6000 in 2023-24 or not it's bloody confusing, the below seems to imply there is already a reporting limit of 50K.

The CGT ‘proceeds reporting limit’ will be stay at £50,000. Total disposals, in any tax year, of less than this amount do not have to be reported in the client’s self-assessment. Gains on shares held within ISAs aren’t subject to a CGT charge.

https://www.libf.ac.uk/news-and-insi...ital-gains-tax

Edit

Think I've found something that may explain the reporting limit, this suggests as the value of the shares I will sell next year may only be £12K from which the shares cost me £5400 to acquire in my works share save from which I would make a £6600 profit which means I will be over the CGT limit by £600 so would need to pay 10% so £60 in tax. My reporting amount is well under the £48K in this article so I won't need to report it and they will just tax me for it?

Example

Peter, who is single and resident and domiciled in the UK, made three disposals in the tax year 2019–20: disposal of his home for £600,000 with a gain of £200,000, his shares in A plc for £14,000 with a gain of £3,500 and his shares in B plc for £35,500, with a gain of £8,000. There are no losses brought forward. The house has been Peter's principal private residence throughout the period that he has owned it.

None of the gain on the sale of the house is chargeable to capital gains tax because of the principal private residence relief see ( 540-000 ). Therefore, the disposal of the house is not a chargeable disposal. The gains on the disposal of the shares in A plc and B plc are chargeable to capital gains tax and so are chargeable disposals.

For the purposes of the exempt amount limit constituent of the reporting limit, the amount of chargeable gains accruing to Peter in 2019-20 is £11,500 (namely, £3,500 for the shares in A plc and £8,000 for the shares in B plc). The exempt amount limit is £12,000. Hence, the exempt amount limit has not been exceeded.

For the purposes of the disposal proceeds limit constituent, the aggregate amount or value of the consideration for all chargeable disposals of assets made by Peter in 2019-20 is £49,500 (being £14,000 for the shares in A plc and £35,500 for the shares in B plc). The disposal proceeds limit is £48,000, being four times the exempt amount of £12,000. Hence, the disposal proceeds limit has been exceeded.

As the reporting limit has been exceeded (i.e. the disposal proceeds limit constituent), Peter is required to complete the capital gains pages of his 2019–20 tax return.

https://library.croneri.co.uk/cch_uk/btr/180-475

[spiderplant]

Originally Posted by Paul

There is something called the "CGT reporting proceeds limit", which will be fixed at £50,000.

I cannot find any (understandable) definition of what this is, but the name seems to imply you dont have to report anything under £50,000 ?

You have to report if the total proceeds of the sale exceed £50k, even if your gain didn't exceed £6k. So if you bought a painting for £60k (as you do) and sold it for £65k, you would have to report it.