Stack about to get shrunk

[Arongoldprog]

2 hours ago, Melon said:

As for receipts, that's a dangerous game as it's your responsibility to maintain adequate records for tax purposes. It may even call into question your legal ownership of the gold if you can't prove how you bought it. 

 

How does that work for private market sales, like on this forum 😅

[Prophecy]

21 minutes ago, Arongoldprog said:

How does that work for private market sales, like on this forum 😅

@ChrisSilver any ideas? Can the silver forum's private chat for trade listing sales be used as proof of purchase? Considering they can be easily forged... and would undermine the privacy of the seller (assuming some form of identifiable information was shared like address or name)

[Spectre77]

1 minute ago, Prophecy said:

@ChrisSilver any ideas? Can the silver forum's private chat for trade listing sales be used as proof of purchase? Considering they can be easily forged... and would undermine the privacy of the seller.

I would imagine keeping a copy of conversation together with bank statement? 

[Prophecy]

9 minutes ago, Emanuel said:

I would imagine keeping a copy of conversation together with bank statement? 

Some people will be super pissed if they knew their bank details were being shared with HMRC showing that they sold e.g. Krugs to someone in here. Honestly, who in here tells HMRC they sold CGTed coins to another forum member?

[Melon]

37 minutes ago, Arongoldprog said:

How does that work for private market sales, like on this forum 😅

The tax rules apply no matter where you buy it. 

2 hours ago, AuricGoldfinger said:

What happens if you sell sovereigns and don’t have receipts for every one? No come back as the tax man isn’t after CGT on these as long as you have proof of them being CGT coins at proof of sale?

Just something i wonder about with no transactions on this forum issuing receipts and picking bits up over the years. Surely there must be some grey area in regards to personal possessions?

No grey area as far as I'm aware. Either they're CGT exempt or they're not. If they're not and you go over your annual limit for CGT, you own the tax man. 

16 minutes ago, Prophecy said:

@ChrisSilver any ideas? Can the silver forum's private chat for trade listing sales be used as proof of purchase? Considering they can be easily forged... and would undermine the privacy of the seller (assuming some form of identifiable information was shared like address or name)

I think the best record will be a copy of the bank transaction. 

As for the potential to forge TSF conversations, the same can apply to receipts and pretty much anything else. But ultimately that's prison time waiting to happen, so I don't think most folk would want to go near that. I certainly would rather pay my tax bill in the highly unlikely event I ever earn enough on PMs to exceed my CGT limit 😆

[ChrisSilver]

22 minutes ago, Prophecy said:

@ChrisSilver any ideas? Can the silver forum's private chat for trade listing sales be used as proof of purchase?

You are asking me a question that needs to be directed to your accountant. I can't help with any tax advice I am afraid. 

[Prophecy]

1 minute ago, ChrisSilver said:

You are asking me a question that needs to be directed to your accountant. I can't help with any tax advise I am afraid. 

I'll send you my self assessment to check

[Spectre77]

1 minute ago, Melon said:

that's prison time waiting to happen

I don t think you get prison time for small amounts lol 😅 they would have to be tens of thousands of GBP under undeclared profits. You see people on news with 100-200k and they barely get prison time-most often you will have to pay extra tax and some warnings. Best to be hones with them and keep track of what you buy and sell and how you have worked out your profits. I keep track of these in excel with evidence from here that should match bank statement with what I buy/sell

[Groundup]

@Melon how would you use the wife for CGT allowance.

[Melon]

7 minutes ago, Emanuel said:

I don t think you get prison time for small amounts lol 😅 they would have to be tens of thousands of GBP under undeclared profits. You see people on news with 100-200k and they barely get prison time-most often you will have to pay extra tax and some warnings. Best to be hones with them and keep track of what you buy and sell and how you have worked out your profits. I keep track of these in excel with evidence from here that should match bank statement with what I buy/sell

I think that there's a big difference between undeclared profits and forging evidence to defraud HMRC. For the latter which was mentioned in the post I quoted, I think prison may well be on the cards. But I might be wrong, I'm neither a lawyer nor an accountant! 

5 minutes ago, Groundup said:

@Melon how would you use the wife for CGT allowance.

As I understand it (but do your own research), you each have a CGT allowance and gifts between a married couple are not taxable. So in effect if you sold gold you could gift half to your spouse first and declare half the profit each, even if you personally purchased it all. That would, to my limited knowledge, be legal. Whether it's sensible would very much depend on the strength of your relationship with your spouse 😄

[Groundup]

@Melon  thanks I will indeed look into this. Thanks 😊

[PeterPan]

You can make tax free transfers of assets to your legal partner (boyfriend/girlfriend doesn't count!) but remember that the cost price remains the same as the original purchase. So.. If you bought at 1000 and transferred when it was 1400, when your wife sold they would consider the 1000 to be the cost price, not the 1400. Its not an "arms length transaction" like selling to a third party would be. 

You'd also have to prove that ownership transferred. Easily done with shares and property, less so with smaller assets which aren't registered anywhere. 

If it's a sizable saving on tax then it's probably worth getting your solicitor to knock something up as proof. But either way, do your own research and speak to your accountant.